Amidst the aftermath of the $234 million hack that hit Indian crypto exchange WazirX in July, a Singapore court has stepped in to offer a four-month conditional moratorium. This decision places certain requirements on WazirX, including the disclosure of wallet addresses through a court affidavit, prompt responses to user inquiries, submission of financial records within six weeks, and the use of an independent platform for any future operational voting processes.
Nischal Shetty, the Founder of WazirX, expressed gratitude for the court's decision, emphasizing the company's commitment to resolving the situation efficiently and fairly. As WazirX progresses towards recovery and restructuring, Shetty assured stakeholders that regular updates will be provided on the proceedings and further developments.
The Long Road to Resolution
Initially seeking a six-month moratorium following the breach that led to a significant loss for its customers, WazirX has been transparent about the court's conditions. These include making wallet addresses public through a court affidavit, addressing user queries raised in court sessions, releasing financial information, and ensuring that future voting related to court applications undergo scrutiny by independent parties.
Despite the legal maneuverings, there is uncertainty about the possibility of customers recovering their losses in cryptocurrency. During court proceedings, WazirX was encouraged to disclose any additional assets it holds beyond its token holdings, signaling a positive step towards transparency and good faith efforts.
Tracking the Trail of Stolen Funds
Recently unearthed data from Arkham Intelligence reveals intriguing insights into the fate of the stolen assets from WazirX. A wallet associated with the pilfered funds now holds a mere $6 million in ETH, with the stolen assets frequently shuffled to new wallets before being rerouted through the privacy-centric service known as Tornado Cash.
In August, the hacker transferred over $50 million in tokens to Tornado Cash, with a surge in activity observed in September. The latest transaction involved the movement of 3,792 ETH—equivalent to around $10 million—to a fresh wallet on a Wednesday, showcasing the ongoing saga of the financial labyrinth surrounding the stolen funds.
