Altcoins Talks - Cryptocurrency Forum
Learning & News => News related to Crypto => Topic started by: ABCbits on September 03, 2024, 12:19:48 PM
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WazirX to Approach Singapore High Court With Moratorium
WazirX's parent company, Zettai, claims the moratorium will give the exchange more "breathing space" to restructure its operations
Embattled crypto exchange WazirX is heading to the Singapore High Court today (https://www.cryptotimes.io/2024/09/02/wazirx-heads-to-singapore-court-townhall-with-users-today/?ref=blockhead.co) in an effort to seek a moratorium.
During a digital town hall yesterday, WazirX and financial advisory firm Kroll stated they were seeking a moratorium through the Singapore legal system that would prevent legal action against the exchange while it undergoes restructuring... Read more here (https://www.blockhead.co/2024/09/03/wazirx-to-approach-singapore-high-court-with-moratorium/).
As reminder, WazirX was hacked few months ago where they lost 45% of the funds which discussed here (https://www.altcoinstalks.com/index.php?topic=322882.0). But i doubt they can make significant recovery even if their moratorium request is granted. Your opinion is greatly appreciated.
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Yes WazirX Users in Danger
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Perhaps they are just buying some time, it's not that bad though, maybe they can find someone who are willing to take over the embattled company so that they will still exist but with different owners.
But the best move here is that they should be paying those who lost their money on their exchange as a result of the hack. Customer first should be their priority before they can reconstruct everything.
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Perhaps they are just buying some time, it's not that bad though, maybe they can find someone who are willing to take over the embattled company so that they will still exist but with different owners.
But the best move here is that they should be paying those who lost their money on their exchange as a result of the hack. Customer first should be their priority before they can reconstruct everything.
According to some assessments, WazirX users will only be able to recover 55-57% of their lost funds, but the specific details of how to reclaim them have not been presented. WazirX is not Binance, and users will face more risks when incidents occur.
The crypto market is still developing, and WazirX will still have a chance to recover and compensate users for their losses if this CEX can achieve large profits in the bullrun. However, I am worried that the chances of them doing this are very small. When they lose credibility, they will also lose users and revenue from trading fees and other services. I think WazirX may receive support from its parent company or be acquired by another CEX like Binance.
- WazirX customers may not recover full funds after hack; here’s what the company’s legal advisor said (https://timesofindia.indiatimes.com/technology/tech-news/wazirx-customers-may-not-recover-full-funds-after-hack-heres-what-the-companys-legal-advisor-said/articleshow/113002706.cms)
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According to some assessments, WazirX users will only be able to recover 55-57% of their lost funds, but the specific details of how to reclaim them have not been presented. WazirX is not Binance, and users will face more risks when incidents occur.
The crypto market is still developing, and WazirX will still have a chance to recover and compensate users for their losses if this CEX can achieve large profits in the bullrun. However, I am worried that the chances of them doing this are very small. When they lose credibility, they will also lose users and revenue from trading fees and other services. I think WazirX may receive support from its parent company or be acquired by another CEX like Binance.
- WazirX customers may not recover full funds after hack; here’s what the company’s legal advisor said (https://timesofindia.indiatimes.com/technology/tech-news/wazirx-customers-may-not-recover-full-funds-after-hack-heres-what-the-companys-legal-advisor-said/articleshow/113002706.cms)
Yes, unfortunately, I read this news that WazirX will not be able to compensate its users except for 55-57% of their lost money, this is a very bad decision for the platform to let its users share in the loss that occurred because of the company and has nothing to do with the users.
Yes, this decision will make them lose the trust of the users, and therefore even if they get more time, they will not be able to compensate for their losses, on the contrary, their losses will increase because most of the users will withdraw their money and will not get new users due to the loss of trust.
This is a bad example of how to fail in crisis management.
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Somehow I'm doubtful of the plan to restructure. They are more likely planning to sell the exchange and let the new owner absorb all the liabilities. That might be tough though and the next thing you know, they are already filing for bankruptcy.
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It is surely going to be a long process for customers of WazirX, i don't think there is any hope of them recovering their money back anytime soon, first the exchange suggests a socialization of losses strategy, and now they are in court with a Moratorium. I don't think there is any way back for this exchange, they lost so much to that hack and right now they are insolvent, they would soon file for bankruptcy.
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In new news related to the case, a WazirX hacker has transferred $6.5 million in cryptocurrency to Tornado Cash:
WazirX hacker moves $6.5M in crypto to Tornado Cash
A wallet address associated with the WazirX hacker has transferred $6.5 million worth of stolen ETH to Tornado Cash as the exchange opens up withdrawals to users ahead of time.
A wallet address associated with the hacker that stole over $235 million from Indian crypto exchange WazirX has just moved $6.5 million worth of funds through the sanctioned crypto mixer Tornado Cash.
In a Sept. 3 X post, blockchain security platform Cyvers shared that the hacker had transferred 2,600 Ether — worth $6.5 million at current prices — to Tornado Cash in a bid to launder the stolen funds.
https://cointelegraph.com/news/wazirx-hacker-moves-6m-crypto-tornado-cash
Now the users’ money is gone forever while the hacker can enjoy it freely.
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As reminder, WazirX was hacked few months ago where they lost 45% of the funds which discussed here (https://www.altcoinstalks.com/index.php?topic=322882.0). But i doubt they can make significant recovery even if their moratorium request is granted.
There is no question, WazirX will be finding it hard to get back to where it was before the hack. Unlike Binance, maybe WazirX did not anticipate an incident like this hence they do not have an insurance system in place that can safeguard the interest of their users anytime. So they are using the legal system to come to their rescue so as to get more time for financial restructuring and for the long-term viability. We have to remember that TRUST is a major factor in the cryptocurrency business and once you lost it then you need to pray for some miracle to pull things through. And with Binance now coming to the Indian market, it would be so difficult for WazirX to win back the market it lost. Still, am wishing it the best and may it really survive the rigorous test of time.
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If the user base of the service is large, then the money they lost in hacking is not large and will help them in rescheduling their debts and starting over.
Personally, I do not advise anyone to trust the service, especially since it has expanded significantly in the past months, which means that they have a liquidity problem, not to mention the money they lost due to hacking, so the platform is going through a difficult situation and buying time will only benefit if they decide to leave the market and wait until the value of Bitcoin increases.
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It is surely going to be a long process for customers of WazirX, i don't think there is any hope of them recovering their money back anytime soon, first the exchange suggests a socialization of losses strategy, and now they are in court with a Moratorium. I don't think there is any way back for this exchange, they lost so much to that hack and right now they are insolvent, they would soon file for bankruptcy.
They might be going to sell the exchange for good in order to compensate their customers. Or if they are some companies that is willing to absorb them, and that could be part of the reconstruction of the company.
Hopefully, it will be crypto based companies or even another big exchanges, so that they can still at least some customers. Remember that they have built reputation already, so for sure the company that might absorb them will not have a problem getting any customers and they can continue with their business.
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Perhaps they are just buying some time, it's not that bad though, maybe they can find someone who are willing to take over the embattled company so that they will still exist but with different owners.
I don't see anyone willing to buy their company. After all, their loss is very big and now several exchange (including Binance) now operate again in India.
In new news related to the case, a WazirX hacker has transferred $6.5 million in cryptocurrency to Tornado Cash:
WazirX hacker moves $6.5M in crypto to Tornado Cash
A wallet address associated with the WazirX hacker has transferred $6.5 million worth of stolen ETH to Tornado Cash as the exchange opens up withdrawals to users ahead of time.
A wallet address associated with the hacker that stole over $235 million from Indian crypto exchange WazirX has just moved $6.5 million worth of funds through the sanctioned crypto mixer Tornado Cash.
In a Sept. 3 X post, blockchain security platform Cyvers shared that the hacker had transferred 2,600 Ether — worth $6.5 million at current prices — to Tornado Cash in a bid to launder the stolen funds.
https://cointelegraph.com/news/wazirx-hacker-moves-6m-crypto-tornado-cash
Now the users’ money is gone forever while the hacker can enjoy it freely.
Many centralized service already reject coin from Tornado Cash, where they don't care the reason behind using Tornado Cash. So for better or worse, the hacker have limited option to spend hacked assets.
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I agree with @ ABCbits here.
First, I don't see any company trying to buy WazirX, unless it's a billion dollar company that is willing to take that risk on them and rebuild the company from ground up. I remember when the embattled company FTX before it's collapsed, there are news that Binance and CZ are going to rescue it. But perhaps CZ see that there's nowhere they can resuscitate FTX and so they remove themselves from the picture and it seems it's a good move for them.
Second, hackers are moving the coins, be it in Tornado Cash or any other ways to obfuscate, so it might be very difficult to trace everything and catch the hacker and so little chance to get back the money and pay it's creditors. Although they said that they are willing to at least go for 50%++.
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Many centralized service already reject coin from Tornado Cash, where they don't care the reason behind using Tornado Cash. So for better or worse, the hacker have limited option to spend hacked assets.
Yes, it is true, most centralized and even large decentralized services refuse to accept laundered Tornado Cash assets, but some small centralized exchanges will be happy to accept such large liquidity, so the hacker still has a chance to spend this money because once it enters any centralized exchange it will be difficult to track.
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Yes, unfortunately, I read this news that WazirX will not be able to compensate its users except for 55-57% of their lost money, this is a very bad decision for the platform to let its users share in the loss that occurred because of the company and has nothing to do with the users.
Yes, this decision will make them lose the trust of the users, and therefore even if they get more time, they will not be able to compensate for their losses, on the contrary, their losses will increase because most of the users will withdraw their money and will not get new users due to the loss of trust.
This is a bad example of how to fail in crisis management.
In the most positive way possible: this event makes us realize that CEXs are not suitable places to store too many crypto assets; they are only for trading crypto. Buying assets and holding many assets on CEXs is a high-risk decision, especially since CEXs have become targets for hackers.
I don't use WazirX so I'm not too worried about its fate. I hope it can be acquired by Binance as Binance has just returned to India. WazirX 15M users could be worth a lot and enough for Binance to accept compensating the $230M loss of WazirX from the recent hack. That's a pretty good scenario for both WazirX and its users.
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In the most positive way possible: this event makes us realize that CEXs are not suitable places to store too many crypto assets; they are only for trading crypto. Buying assets and holding many assets on CEXs is a high-risk decision, especially since CEXs have become targets for hackers.
I totally agree, too many people forget about that and they use centralized exchanges like they are banks for crypto, you can do whatever you want in a centralized exchange, but do not store or stake your funds in there. Not your keys, not your coins; and i hope many people will learn from this, though i doubt it.
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I hope it can be acquired by Binance as Binance has just returned to India. WazirX 15M users could be worth a lot and enough for Binance to accept compensating the $230M loss of WazirX from the recent hack. That's a pretty good scenario for both WazirX and its users.
Yes I totally agree with you, I also hope that Binance can acquire WazirX especially in such circumstances as it will be a very favorable opportunity for Binance to acquire it in an easy way with a large user base in the promising Indian market.
I expect that it will be better for everyone especially WazirX users who have suffered a huge loss as Binance acquisition will be a compensation for them.
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WazirX's legal advisers said some days ago that it isn't possible for customers to get 100% of their funds back, something i already know though, and that the best-case scenario is creditors getting 55%-57% of their funds back. I don't even know if they will get that much and even if they will, when.
It must be hard for the creditors to see that the hacker has started moving 'their' funds through tornado cash to obfuscate the origin of the coins. WazirX are in a tight spot right now and they have to make a decision quickly.