Singapore High Court Approved Moratorium to WazirX

It's been over two months since the Crypto hack in Wazir X Exchange, and the Singapore High Court for Wajirx Exchange has now approved the moratorium. This is not good news for the users because this moratorium is for four months and during this time, the exchange can not be sued. The exchange has been trying to hide a lot of information from the users, which has been one of the biggest problems in this case. This is the first-ever hack in the Indian crypto exchange community and the hackers have stolen an amount of over $230,000,000. This amount in INR currency is 2000 crore which is a very big amount. The exchange was registered in Singapore and was not shared before but later on, you just got to know when the moratorium was applied by the exchange in the Singapore region.

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The exchange was trying to get these and finally, they were successful in their plan. It's a breather that they have got to work on their restructuring plan and I think now there is no hope to get the stolen funds. The hacker has also moved almost all the money using Tornado Cash and it is close to impossible to track the hacker. In the beginning exchange was trying to show that they are working on the recovery but unfortunately, they haven't done anything and they also did not keep the community informed.

A Singapore High Court judge approved the moratorium application by Nischal Shetty vis-a-vis Zettai Pte Ltd, which will give a breather space of at least four months to WazirX exchange with certain conditions, after it was hacked for Rs 2000 crore worth of cryptocurrencies, amounting to 45% user funds. This means that WazirX cannot be sued now for the next four months, according to the Singapore justice system.

Some companies in India and users were planning to file a case against the exchange but that might not be a possibility now for another four months. This will be the time when the exchange will be able to plan their restructuring and they are also following the approach of social laws which means the entire hacked amount will be distributed among all the users. The hack was done only on the ERC 20 wallets and there was no impact on Bitcoin holding in the wallets but as part of the social loss all the users will be considered for this and this loss will be spread among all of them.

While there is no hope for the recovery of lost funds also it seems that the exchange will be playing according to its convenience to pay the remaining funds. They have already planned to take out 100 crore for the legal expenses from user funds. They have also clarified that they are not going to use exchange profit in any way and the entire cost will be passed on to the users for the legal case which is unfair but that's how it is going to be and it is because exchange want this way. They are not providing updates to the community and also they are not following transparency with them even though they have started blocking the account on social media whoever tries to question them. Undoubtedly this is not a good approach but that is how it is this time and users are helpless to do anything against them.

This is a learning for the crypto users and also the entire Indian Crypto community that no exchange is reliable. No matter how much the exchange is trying to show that they care for the community in reality, they are not and they are in the business to make money out of it. I would say that never trust the exchanges and also do not keep any funds, especially on the Indian exchanges as they hardly allow withdrawals. Some exchanges in India have even removed the withdrawal option for all the crypto coins and they are saying that they are supporting Web 3 and the crypto ecosystem. I'm not able to understand how they are supporting this ecosystem and decentralisation when the withdrawal is the basic functionality that should always be working. Its because the exchanges are trying to play smart and as users we need to be careful because you never know when something will go wrong and the exchange will be trying to safeguard themselves and not the user community.

Thank you

Posted Using InLeo Alpha