WazirX in Crisis: Legal and Financial Moves to Address $230 Million Crypto Theft and User Fund Recovery

WazirX in Crisis- Key Steps and Legal Strategies to Manage $230 Million Theft

WazirX in Crisis– WazirX, a prominent Indian cryptocurrency exchange, is grappling with a significant crisis following a severe cyberattack in July. The attack has led to the theft of hundreds of millions of dollars in cryptocurrency, leaving the platform struggling to regain stability.

Singapore-Based Zettai Requests Moratorium for Recovery Efforts

On Wednesday, Zettai Pte Ltd, the holding company for WazirX, submitted an affidavit to the High Court of Singapore seeking a 30-day moratorium. This legal pause is crucial for Zettai to negotiate with investors and creditors, aiming to stabilize WazirX and prevent further legal complications.

Impact of the Cyberattack: $230 Million Stolen and Withdrawals Suspended

The cyberattack has had a profound impact on WazirX, with attackers making off with $230 million in various cryptocurrencies, including $102 million in Shibu Inu tokens. As a result, WazirX has suspended withdrawals and is working tirelessly to restore user funds.

Efforts to Rebuild Trust: WazirX’s Recovery Plan and Investor Discussions

In an attempt to rebuild trust, WazirX co-founder Nischal Shetty has assured users that the exchange is actively addressing the issue. The company has set aside significant resources, including $284 million in liquid crypto assets, for legal proceedings and restructuring. Zettai is also in talks with 11 potential investors, termed white knights, to secure capital and support the recovery process.