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Embattled crypto exchange WazirX is heading to the Singapore High Court today in an effort to seek a moratorium.
During a digital town hall yesterday, WazirX and financial advisory firm Kroll stated they were seeking a moratorium through the Singapore legal system that would prevent legal action against the exchange while it undergoes restructuring.
A moratorium application is a legal request to temporarily halt legal actions or financial obligations, giving the company time to restructure or resolve financial issues. In this case, WazirX's parent company, Zettai, is the company in question.
Zettai believes the moratorium will provide "breathing space" for WazirX to restructure its operations.
In an effort to damage control for creditor approval, the move would mean that users will be unable to withdraw their assets during the legal process, which might take at least six months.
The exchange also briefly discussed its ownership dispute with Binance during the town hall in which the world's leading crypto exchange denies ownership. Users were warned that 100% recover of funds was unlikely.
Users were invited to the town hall event yesterday and to witness the court proceedings today virtually.
Blockhead
In July, WazirX suffered a breach that allowed hackers to extract users' funds. According to the team, the digital wallet used by the WazirX team had six signatories—five from WazirX and one from Liminal, with transactions requiring three WazirX signatories (using Ledger hardware wallets) and one Liminal signatory for approval.
The cyber attack led to the loss of 45% of user funds, amounting to around $234 million.
