The company stated that WazirX requires “breathing space” as its parent entity, Zettai, advances with a restructuring.
CoinSwitch, a cryptocurrency exchange, has initiated legal proceedings against its embattled competitor, WazirX, in response to funds that remain on the latter’s platform as a result of an alleged cyber attack in July.
This action is being launched on the very same day that WazirX revealed in a blog post that it has applied for a 30-day moratorium with the High Court of Singapore yesterday.
According to what the exchange indicated, a hearing date is still up in the air. “If the moratorium is approved, it will provide the exchange with a “breathing space” while Zettai makes progress with a restructuring, which is the most effective method of addressing users’ cryptocurrency balances on the Platform and facilitating recovery for users,” they wrote.
Zanmai Labs, which administers WazirX in India, is the parent company of Zettai. The company stated that the filing is not quite the same as requesting bankruptcy protection; rather, it is an endeavor to prevent insolvency and reopen withdrawals.
WazirX was the victim of a cyber attack on July 14, which led to the seizure of cryptocurrency assets valued at approximately $230 million (₹2000 crore). ERC-20 tokens that were based on Ethereum and stored in WazirX’s hot wallets were the primary targets of the incident.
WazirX suspended all withdrawals in the aftermath, resulting in users being unable to access their funds and causing widespread concern and frustration. The exchange resumed partial withdrawals last week.
CoinSwitch has stated that the company has assets on WazirX worth approximately $9.7 million (Rs 81 crore). These assets include Rs 12.4 crore in INR, Rs 28.7 crore in ERC-20 tokens, and Rs 39.9 crore in other tokens. The exchange stated that this amounts to approximately 2% of CoinSwitch’s total funds, with the affected ERC20 tokens comprise less than 1% of CoinSwitch’s total assets.
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