SUMMARY
- WazirX removed a YouTube video where they promised 100% profit-sharing during the restructuring process.
- The business forms a Creditors’ Committee after a $234M hack to address user losses & liabilities.
- The firm’s restructuring plan excludes sharing past profits, clarified during the second town hall meeting.
The cryptocurrency exchange and trading platform WazirX recently removed a YouTube video in which they promised to provide users 100% of any future gains in cryptocurrency prices.
During yesterday’s (October 4) one-hour town hall, George Gwee, director of Kroll, the legal company overseeing the cryptocurrency exchange’s reconstruction following its ₹2000 crore theft, and cofounder of WazirX, Nischal Shetty, answered queries from impacted users where a user asked Gwee during the Q&A session what the profit-sharing percentage would be if cryptocurrency prices increased throughout the restructuring process, to which Gwee responded that consumers would receive 100% of the gains from cryptocurrency price increases made during WazirX’s restructuring in the video that The Crypto Times was able to view.
Even though, WazirX turned the video private after many applauded Shetty for taking the initiative. Users are dissatisfied about this, especially since the corporation pledged justice before the Singapore court, which issued a four-month moratorium. The firm made it clear at their second YouTube town hall that the new restructuring plan would not allow them to share previous revenues with users.
The company described the restructuring process during the meeting, stating that the assets of Zettai, the parent company of WazirX, comprise any money left over after the hack, recovered tokens, tokens earned from profit sharing following the restructuring, and tokens from any further partnerships.
In a recent development, WazirX announced that it would establish a Committee of Creditors (CoC) by October 9 to reorganize its obligations after a $234 million hack caused major losses for millions of Indian users. The 10-person panel comprising hacked users will offer recommendations and input on the company’s restructuring strategy.
A significant breach in one of WazirX’s multisig wallets occurred in July, causing the loss of over $230 million in digital assets, more than 45% of the exchange’s total reserves. The business has started a restructuring process to handle its liabilities in response.
