WazirX, a popular crypto platform, is currently facing the aftermath of a $234 million hack that occurred in July. As a result, the platform has entered into an initial 30-day moratorium, awaiting a decision by Singapore’s High Court on whether to grant an extension. This move comes after rival platform CoinSwitch announced its intention to pursue legal action in order to recover approximately $9.6 million in digital assets that are currently trapped on WazirX’s exchange.
Filing for the Moratorium
Zettai Pte, the Singapore-incorporated company behind WazirX’s operations, filed for the moratorium on August 27, triggering an automatic 30-day freeze. This freeze allows the company time to draft a restructuring plan to address the impact of the hack, estimated to take at least six months to finalize. WazirX emphasized that the moratorium provides crucial breathing room to address users’ crypto balances and work towards recovering the funds.
Rival Platform CoinSwitch’s Response
In response to the hack, CoinSwitch revealed that it has substantial assets, including fiat currency, ERC20 tokens, and other digital assets, stuck on WazirX’s platform. Despite multiple attempts to resolve the issue and recover the funds, CoinSwitch expressed frustration over the lack of clarity from WazirX regarding a full recovery plan. As a result, CoinSwitch has stated that it has no choice but to pursue legal action in order to recover the funds.
Despite the potential lawsuit, WazirX co-founder and CEO Nischal Shetty remains confident in the platform’s ability to navigate through this challenging time. He emphasized that all users will be treated fairly throughout the restructuring process, regardless of the size of their claims. Shetty highlighted the importance of unity and collaboration among all stakeholders to ensure a smooth path forward for the platform.
The recent hack on WazirX has triggered a series of legal actions and restructuring efforts to address the impact on users’ crypto balances. Both WazirX and CoinSwitch are actively working towards recovering the funds and ensuring fair treatment for their users. It remains to be seen how the situation will unfold in the coming months, as stakeholders collaborate on a path forward for the crypto platform.
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