The cryptocurrency exchange WazirX was hacked for $230 million more than a month ago by the North Korean hacker group Lazarus. Now waiting for a possible refund, the crypto exchange's creditors are wondering how soon they will see their funds again, and especially in what form.
A moratorium to discuss calmly with creditors and give ourselves a little breathing space
On July 18, 2024, cryptocurrency exchange WazirX was the victim of a large-scale cyberattack, forcing it to suspend trading on its platform.
In all, More than $230 million, including $102 million in Shiba Inu (SHIB), was stolen following this hack whose main suspect turns out to be the Lazarus group, linked to North Korea.
On Wednesday, Zettai Pai, a Singapore-based holding company and parent company of WazirX, filed an affidavit with the High Court of SingaporeThe company has requested a 30-day moratorium. in order to discuss calmly with investors and creditors and find solutions for the future of the crypto exchange.
Also, thanks to this moratorium, Zettai Pai also offers itself protection against possible legal action brought against him. Indeed, the CoinSwitch exchange is reportedly considering suing the company, claiming to have been harmed by this situation. In all, CoinSwitch Wants to Recover $9.6 Million in Deposits It Made on WazirX ASAP.
On X, CoinSwitch did not hesitate to complain about the situation:
A note on CoinSwitch funds on WazirX – a thread🧵 pic.twitter.com/lnckwSnnPA
— CoinSwitch: India's Simplest Crypto App 🚀 (@CoinSwitch) August 28, 2024
Since the day of the incident, we have been trying to be in constant contact with the WazirX team, seeking to recover the funds blocked on their exchange. […] However, our efforts have not borne fruit, leaving us with no choice but to take legal action to recover the funds.
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WazirX wants to repay its creditors and presents its restructuring plan
As of now, withdrawals are still suspended on the platform, and WazirX assures that it is working to restore its users' funds. The firm has even called on financial and legal advisors to guide it and WazirX co-founder Nischal Shetty has outlined the crypto exchange's restructuring plan :
As part of the restructuring, the impact of the cyberattack will be distributed pro rata among users who rank equally with each other as unsecured creditors. They will receive a share of the available token assets associated with the platform, proportional to the assets they were robbed of last July.
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Zettai Pai claimed that he was in possession of $284 million in cryptocurrenciesas well as from a reserve of 12 million dollars which should enable it to defend itself during legal proceedings and to finance its efforts to repay its creditors.
In parallel, WazirX's parent company reportedly in talks with 11 investorsmainly cryptocurrency exchanges and trading companies. The crypto exchange hopes that they can inject capital and support the restructuring plan he has devised.
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Source: Press release
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Surprised by the rise of crypto-assets in the late 2010s, I started to closely follow this sector that fascinates me to the highest degree. When I am not in football stadiums, rugby or handball halls, I work on writing relevant articles about cryptocurrencies and more broadly, Web3.
Zacharie Tazrout
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