- WazirX is undergoing restructuring and plans to restore user access to funds over the next six months.
- Users can expect to receive between 55% and 57% of their funds back after covering restructuring costs.
Zettai Pte Ltd, the parent company of crypto exchange WazirX, held a town hall meeting today to address the ongoing restructuring process following a major $230 million (₹2000 crore) crypto hack. The company has announced that “it will take up to six months to complete this restructuring, during which users will gradually regain access to their funds.”
The restructuring process, which was officially requested in a Singapore court on August 23, aims to reallocate the remaining crypto assets to users on a pro-rata basis. This means that assets will be allocated according to the proportion of each user’s claim relative to the total.
Approximately 45% of the available funds will cover restructuring costs. The remaining 55% will be returned to customers. Importantly, WazirX plans to make these distributions in cryptocurrency rather than fiat money.
Key Updates from WazirX’s Restructuring Plan and Strategic Moves
WazirX’s co-founder Nischal Shetty and representatives from financial advisory firm Kroll, including Jason Kardachi and George Gwee, discussed the detailed restructuring plan. During the virtual press conference, Gwee highlighted that “users can expect to receive between 55% and 57% of their funds back” after covering restructuring costs.
In addition to asset distribution, WazirX is seeking support from a “white knight” investor. This strategic move aims to secure vital capital to help return users’ funds and stabilize the company’s financial situation. The company is also exploring potential partnerships and collaborations to further aid in the recovery process.
To protect itself from immediate legal actions while it works through the restructuring, WazirX has applied for a moratorium with the Singapore High Court. This legal protection will allow the company to focus on restructuring without the pressure of immediate legal challenges.
Today’s town hall was a step towards transparency and reassurance for WazirX’s community. The company will navigate this challenging period with a clear plan and will communicate openly with its users and stakeholders.
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