On Wednesday, August 28, WazirX announced in a blog post that it has filed an application, through Zettai Pte Ltd, for a moratorium for restructuring with the High Court of Singapore.
WazirX Exchange Filed A 30-day Moratorium Application With The Singapore High Court
According to the post, the embattled crypto exchange filed a moratorium application to stop all ongoing and new legal actions against it until it could devise a workable compensation plan to repay its affected Indian users.
WazirX also revealed that it will hold a virtual Town Hall meeting today, Sept. 2, to discuss the moratorium application and proposed restructuring plan with its users.
BTCRepublic earlier reported that Indian exchange giant WazirX suffered a $235M (~Rs 2000 crores) hack, which affected more than 45% of the exchange’s holdings.
Purpose Of The Moratorium Application For WazirX
The moratorium application seeks to temporarily delay or pause some critical activities like legal proceedings, debt collection, and loan repayments.
Filing the moratorium application is an important move for the exchange, which sees the application as an opportunity to take a break from all legal actions. The break will give WazirX enough time to restructure and decide what to do next amidst the ongoing financial challenges.
WazirX stated that the court proceedings in the Singapore High Court will also be discussed at the virtual Town Hall meeting on Sept. 3.
The exchange expects the two-day virtual Town Hall event to clarify its strategies for recovering users’ funds stolen through the hack and its plans to repay affected users.
Critical Points To Be Discussed At The Virtual Town Hall Meeting
Here are some important topics to be discussed at the Town Hall event:
Reconciliation of Users’ Funds
After the hack, WazirX initially reported that the user balances were wrong, totaling $570M. However, the exchange later admitted that it reported wrong user balances, which were later reported to be $546M. WazirX users demand an explanation for this discrepancy.
Undue Deduction of Legal Expenses
WazirX announced that it deducted Rs 100 crore (~$12M) from its balance to finance legal expenses, but users are concerned and need an explanation for this deduction. Legal fees are supposed to be raised by the WazirX team and not deducted from users’ funds.
How the Affected Users Would be Compensated
WazirX needs to clarify how it will compensate the affected users. Will the compensation be based on the current crypto prices or on the prices on the day the exploit took place?
Accountability and Transparency from WazirX
Finally, users demand accountability and transparency from WazirX. Users want WazirX to be open enough about its financial dealings, remaining funds, and compensation plan.
