HomeNEWSMisinformation is hurting restructuring process - WazirX co-founder

Misinformation is hurting restructuring process – WazirX co-founder

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Nischal Shetty the co-founder of India-based cryptocurrency exchange, WazirX has bemoaned how misinformation is affecting the restructuring of the firm. The executive through a post on X (formerly Twitter) on Monday revealed how some groups are “spreading misinformation about the restructuring process.”

According to the co-founder, the misinformation is further complicating the process as the exchange is under a Singapore scheme of arrangement to address the asset gap inflicted by the breach. More so, the co-founder of WazirX urged community members and customers to be cautious as misleading information can distract them from the firm’s effort to resolve the issue. 

Through the post, Nischal Shetty reemphasized the commitment of the crypto exchange towards fixing the problem as soon as possible. Additionally, the co-founder vows that the result of the restructuring process will come out good for all community members and users. 

WazirX has been enduring heavy criticism over its crisis management and fund recovery efforts. Recall that in July, the India-based cryptocurrency exchange lost about 45% of its customers’ funds to a security breach. 

The bad actor looted about $234 million from WazirX, compelling the exchange to apply for a six-month moratorium with the Singapore High Court. 

Court Grant WazirX a Four-Month Moratorium 

Meanwhile, the post from the co-founder surfaced shortly after WazirX secured a four-month moratorium in Singapore. According to WazirX, the court granted the exchange the moratorium due to how it has been proactive since the inception of the proceedings. 

However, the court attached certain conditions to the four-month moratorium. As revealed, the court stated that WazirX must reveal its wallet addresses via an affidavit. 

Also, the court mandated that the India-based exchange must reveal its book of accounts within six weeks. Other conditions include ensuring that future voting on further developments must be carried out on an independent platform and swift response to users’ inquiries.

How the Hacker Has Successfully Moved More Than 90% of Stolen Funds 

While the exchange is working to reimburse customers, the attacker has moved a significant portion of the stolen funds using popular privacy tool Tornado Cash. On-chain data indicated that the hacker has moved up to $230 million from the stolen funds through the privacy tool. 

Furthermore, less than a month after the hack, the bad actor already moved $50 million before stepping up their efforts in September. In a recent move, the hacker transferred 3,792 ETH ($10 million) to another wallet. 

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David Idowu
David Idowu
David Idowu is a crypto reporter and trader with wealthy years of experience. He believes that blockchain technology has numerous opportunities that are begging for proper utilization. Away from work, David is either reading about World Politics, History or Tech Innovations.

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