WazirX Requests Court Moratorium Amid Rival Lawsuit Over Assets

By: Isha Das

WazirX, a notable cryptocurrency exchange, has approached the Singaporean court seeking a moratorium period of 30 days, which it describes as crucial 'breathing space' needed to move forward with its restructuring efforts. The request highlights the strained situation faced by WazirX and its parent entity, Zettai, amidst ongoing legal and financial challenges.

The plea surfaced as Indian crypto exchange CoinSwitch prepares to initiate legal proceedings against WazirX. CoinSwitch is pursuing action over locked funds held in WazirX's wallet, amounting to approximately $9.6 million. This legal challenge further compounds the pressure on WazirX, which has been struggling to navigate the complex landscape of legal and financial hurdles post its hacking incident.

According to sources, the restructuring plan is aimed at addressing the current liabilities and devising a strategic pathway for the exchange's revival. Industry experts observe that the current scenario underscores the vulnerabilities and operational risks within the cryptocurrency market, particularly when exchanges face cyber threats and subsequent asset lock-ups.

The outcome of WazirX's appeal for a moratorium will likely set a precedent for how exchanges can seek judicial relief to manage sudden financial crises. The court's decision will also have significant implications for the broader crypto community, highlighting the necessity for robust risk management practices and legal frameworks to protect stakeholders' interests in the ever-evolving digital asset ecosystem.