The recent $234 million hack on WazirX has led to the crypto platform entering into an initial 30-day moratorium, awaiting a decision by Singapore’s High Court on a possible extension. This move comes as rival platform CoinSwitch has announced its intent to take legal action to recover approximately $9.6 million in digital assets trapped on WazirX’s exchange. It is evident that the fallout from the hack has put significant pressure on WazirX and its operations.
WazirX revealed that Zettai Pte, the Singapore-incorporated company behind its operations, filed for the moratorium, triggering a 30-day freeze to draft a restructuring plan. The company estimates that it will need at least six months to finalize the plan and collaborate with stakeholders. Under the planned restructuring, users will receive a share of the available token assets proportional to their account balances. This approach aims to distribute the impact of the hack among users, emphasizing the importance of recovering funds and addressing users’ crypto balances.
CoinSwitch, on the other hand, has expressed frustration over the lack of clarity from WazirX regarding a full recovery plan. The platform disclosed that it had substantial assets stuck on WazirX’s exchange and had been unsuccessful in recovering the funds despite multiple attempts. As a result, CoinSwitch has made the decision to pursue legal action to retrieve the trapped digital assets. This move highlights the challenges that platforms face in the aftermath of security breaches and the complexities involved in resolving such issues.
Despite the impending legal action, WazirX co-founder and CEO Nischal Shetty remains focused on treating all users fairly, irrespective of the size of their claims. He stressed the importance of unity and collaboration in the restructuring efforts, underscoring the need for support from all stakeholders to navigate through the crisis successfully. CoinSwitch, on the other hand, reassured its users that the affected funds represent a small percentage of its total assets and that it is using treasury reserves to maintain a 1:1 ratio for user holdings.
The aftermath of the WazirX hack underscores the challenges that crypto platforms face in maintaining security and addressing breaches effectively. The legal disputes and recovery efforts being undertaken by WazirX and CoinSwitch highlight the complexities involved in navigating such situations and the importance of transparency and cooperation in resolving them. It remains to be seen how these platforms will overcome the aftermath of the hack and emerge stronger from this crisis.