WazirX allocates $12 million to cover legal expenses and recover stolen cryptocurrency
In response to a significant larceny that occurred in July, WazirX’s holding company disclosed on Wednesday that it was exploring potential options for compensating creditors through a scheme.
WazirX has allocated millions of dollars to fund legal expenses associated with the seizure of hundreds of millions of dollars in cryptocurrency following a cyberattack that brought the Indian exchange to its knees in July.
Zettai Pte Ltd, the holding company of WazirX, filed an affidavit with the High Court of Singapore on Wednesday. The affidavit requests a 30-day moratorium to enable discussions with investors and creditors in order to stabilize the platform.
The platform’s continuity and the prevention of additional legal disruptions are considered to be contingent upon the moratorium’s approval. In response to inquiries for comment, WazirX and Zettai did not respond promptly.
Following the attack that resulted in a substantial financial strain, WazirX has suspended withdrawals and is currently in the process of reestablishing user funds. The assailants escaped with $230 million in a variety of cryptocurrencies, including $102 million in Shibu Inu tokens.
The attack has resulted in the stranding of numerous users, and the exchange’s trust has been devastated. Nischal Shetty, WazirX’s co-founder, stated on Thursday that the exchange was making efforts to promptly resolve the matter in an effort to allay any apprehensions.
Rivalry exchange CoinSwitch has initiated legal proceedings against its embattled competitor in response to funds that remain on WazirX’s platform.
Zettai stated in its affidavit that it was evaluating the requirements of creditors to receive payments under a prospective scheme in order to ascertain the most effective method of distributing users’ assets.
Zettai disclosed that its liquid assets consist of $284 million in cryptocurrency, with an additional $12 million set aside for ongoing investigations, legal proceedings, and liability restructuring initiatives.
