Indian cryptocurrency exchange WazirX has been granted a conditional four-month moratorium by the Singapore High Court following a significant hack in July, which resulted in over $230 million in losses. The exchange, which lost about 45% of its customers' funds, sought restructuring through its parent company, Zettai Pte Ltd, incorporated in Singapore. The moratorium offers temporary relief from legal action, allowing the exchange time to resolve the financial crisis and ensure users are reimbursed.

As part of the court’s conditions, WazirX must fulfill four key requirements within six weeks. These include publicly revealing details of its crypto wallets through court affidavits and addressing users’ queries. Furthermore, the exchange must disclose its latest financial information and ensure independent oversight of future voting processes for court applications. This restructuring plan will see WazirX working closely with its creditors, who will vote on the proposed approach. If the plan is approved, 55% of customer funds could be refunded within the next few months.

The hack itself has been linked to the North Korean Lazarus Group, a notorious hacking organization, according to blockchain analytics reports. The hackers converted the stolen funds into Ethereum and laundered them through Tornado Cash, a crypto mixing tool. Despite ongoing efforts by authorities and on-chain analysts, the hackers have successfully laundered the majority of the stolen funds, leaving only a fraction remaining.

The four-month moratorium provides a brief respite for WazirX, but the road to recovery remains challenging. The exchange has committed to working on a comprehensive restructuring plan that includes token recovery mechanisms and potential revenue-generating initiatives to benefit users. Despite this temporary relief, much remains uncertain as WazirX continues to navigate the fallout of the hack and ongoing disputes with Binance over its ownership claims.