The 2000 Cr WazirX hack has scared the Indian crypto community for over 6 months now. While users are constantly grilling the exchange management for the return of funds, the Singapore court has given the green light to a restructuring plan.
With the court’s approval granted, Zettai Pte Ltd, the parent company of WazirX, is going to hold a meeting with its creditors. In this meeting, Zettai’s plans to make a vote so that they can distribute assets and potentially revive operations.
The plan is not liked by users as it will only give them back funds in certain crypto assets rather than all the crypto assets they held prior to the hack. However, the plan was not made with their involvement; all they have power to do is vote on it to move forward.
The court granted Zettai a 16-week moratorium, which provides legal protection while the company restructures its operations, but this decision has not been met with universal approval.
Nischal Shetty, founder of WazirX, has also shared that the next step involves preparing for the voting process, where scheme creditors will have the opportunity to vote on the proposed Restructuring Scheme. This scheme aims to facilitate faster and fairer recoveries for users. Details regarding the voting process and dates will be shared soon.
Many users of WazirX have expressed concerns about Zettai’s management and transparency, particularly regarding the handling of funds and the circumstances surrounding the cyberattack. However, this court approval is just the first step in the recovery process, users will not receive their funds immediately.
Zettai’s proposed recovery plan includes several components:
- Debt Restructuring Framework: A structured approach to reorganizing liabilities.
- Token Distribution: Users will receive tokens from rebalanced platform assets within 10 business days after approval.
- Recovery Tokens: Issuance of recovery tokens to facilitate user recoveries.
- Platform Reactivation: Plans to bring WazirX back online with new features, including a decentralized exchange.
- Profit-Sharing Structure: Profits generated over three years will be used to fund token purchases.
Nischal Shetty said, “I thank the court for granting us leave to convene the scheme meeting and for acknowledging our efforts. We are leaving no stone unturned to facilitate recovery to the users at the earliest and appeal to the users to vote in favour of the scheme.”
Despite these plans, scepticism remains among users regarding whether they will see any real recovery, especially given that the stolen funds have not been recovered. The upcoming online creditors’ meeting will involve voting on this proposed recovery scheme, with Zettai urging all users to participate.
Also Read: WazirX Hack Update: Investigators Freeze $3M in Stolen Funds
