The recent $234 million hack on the WazirX platform has led the company to enter into an initial 30-day moratorium. This decision comes as a shock to the cryptocurrency industry, especially with the pending decision by Singapore’s High Court on whether to grant an extension. CoinSwitch, a rival platform, has also announced its intention to pursue legal action to recover approximately $9.6 million in digital assets trapped on WazirX’s exchange.
Restructuring Plan and Collaboration
WazirX has revealed that Zettai Pte, the company behind its operations, filed for the moratorium triggering an automatic 30-day freeze. The company estimates that it will need at least six months to finalize the restructuring plan and collaborate with stakeholders. Under the planned restructuring, the impact of the hack will be distributed among users, who will receive a share of the available token assets proportional to their account balances.
The CEO of WazirX, Nischal Shetty, emphasized the importance of unity in the restructuring process. He mentioned that the timeline for restructuring depends on how quickly the firm and its creditors can agree on a path forward. Shetty highlighted the need for support and collaboration from all parties involved in order to effectively address the issue at hand.
CoinSwitch, on the other hand, expressed frustration over WazirX’s lack of clarity regarding a full recovery plan. The platform has substantial assets stuck on WazirX following the hack and has been unable to recover the funds despite numerous attempts. Due to this, CoinSwitch has stated that it has no choice but to pursue legal action to retrieve the funds. However, the platform assures its users that the affected funds represent a small percentage of its total assets and is using its reserves to maintain a 1:1 ratio for user holdings.
Overall, the implications of WazirX’s moratorium on the crypto industry are significant. The security breach and subsequent legal action have raised concerns about the safety and transparency of cryptocurrency exchanges. The restructuring plan and collaboration efforts will be crucial in determining the future of WazirX and its users. As the industry continues to evolve, unity and support will be essential in overcoming challenges and ensuring fair treatment for all stakeholders.