WazirX cryptocurrency exchange has been granted a four-month moratorium by Singapore courts. The decision, made on September 26, 2024, comes as a crucial move in the company's efforts to resolve its financial obligations and secure a sustainable recovery plan following the $235-million theft last month. The moratorium provides WazirX with additional time to engage with its creditors and work on a legally binding resolution to restore the balances of cryptocurrency holders.
The court's decision acknowledges WazirX's compliance with Section 64 of the Insolvency, Restructuring, and Dissolution Act (IRDA), a key factor in securing this legal relief. Since the start of the proceedings, WazirX claims to have taken a proactive stance, maintaining open communication with creditors and acting swiftly to address its financial situation.
What Will WazirX Do Now?
Under the court’s directives, WazirX has committed to several transparency measures. The company will make public the wallet addresses through a court affidavit, ensuring transparency in handling funds.
Additionally, WazirX will respond to user queries raised in the court proceedings, release its financial information, and ensure that any future voting on court applications is overseen by independent third parties. These steps are intended to build trust and foster a more transparent process as the company navigates its restructuring phase.
Founder and CEO of WazirX, Nischal Shetty, expressed appreciation for the court's ruling, stating that it allows the company to focus on developing a swift and creditor-approved recovery plan. "We are thankful for the court’s decision, which allows us to focus on our path to resolution, recovery and restructuring," said Nischal Shetty, Founder of WazirX. "Our immediate filing for the moratorium was a decisive step taken to ensure the fastest, fairest, creditor-approved, legally binding path to resolution where creditors have a token choice and potential upside in a bull run."
WazirX is currently collaborating with advisors and stakeholders to formulate a comprehensive scheme of arrangement. This plan will aim to provide the best possible outcome for creditors, ensuring that the resolution process is both fair and timely. As part of its ongoing commitment, the company will continue to keep stakeholders updated on the progress of the restructuring efforts.
With the granted moratorium, WazirX has a critical window to work toward a solution that aligns with the interests of creditors and users alike. The company remains focused on navigating its financial challenges efficiently and equitably.
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