Gairika Mitra
WazirX, an Indian cryptocurrency exchange took a major step in addressing its fallout from the cyberattack that happened last month. It filed for a moratorium on Wednesday with the Singapore High Court.
The move was made under the Insolvency, Restructuring, and Dissolution Act 2018 and aims to provide the necessary framework for restructuring the platform’s crypto liabilities through a Scheme of Arrangement.
Using the moratorium, WazirX users can now develop and implement plans to help manage and restructure its financial obligations and serve its user base. It will also host a town hall meeting on September 2, 2024. The town hall will be centered around explaining the key features of the moratorium and the Scheme of Arrangement.
Speaking about the development Nischal Shetty, co-founder of WazirX revealed that the platform is reaching out directly to its users with an email that includes a 52-page affidavit that he filed personally.
“This document lays bare the situation we’re facing and the steps we’re taking to protect our community. One key factor in our timeline for restructuring is how quickly we can all come together and agree on a path forward. We need to be united in this effort. Your support and collaboration are crucial to making this happen. We’re here to help and will always be available for our people, our tribe” he added.
Just a few hours before his post Shetty reached out to his audience in a deeply emotional post, specifying that it was him speaking and not any PR team. He noted that the pain and stress of the WazirX attack has been “overwhelming” and that “his heart aches for every single one of you.”
WazirX faced a security breach last month and lost more than $230 million as a result of the attack. The breach also impacted one of its wallets, leading to a loss of significant user funds and around $100 million in SHIB.
In a previous interview with The Shib Daily Shetty shared that WazirX’s immediate plans to resume trading that had paused for a few days following the hack. The exchange recently began initiating Phase 1 of INR withdrawals, allowing eligible users to withdraw up to 66% of their balances.
WazirX gained popularity when Binance acquired it, making it a global name and integrating the former into Binance’s ecosystem. Binance however distanced itself from WazirX’s dealings and partnerships in 2022.
Read More
- WazirX Offers $23M Bounty to Recover $234M in Stolen Assets Following Major Hack
- Exclusive Interview / WazirX Discusses Recovery Plans and Future After $230M Security Breach
- India’s WazirX Exchange Breached, Hacker Siphons Off $230M in Crypto
Gairika holds positions in BTC. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
