WazirX’s Moratorium Plan Backed by Just 441 s Amidst Widespread Social Media Backlash 4x2w3y Technology News

This week, WazirX issued its second affidavit, revealing recent communication details with its s. 3l5148

Written by Siddharth Suvarna | Updated: 13 September 2024 15:57 IST

Photo Credit: WazirX 5n3j6u

On July 18, a multi-sig wallet belonging to WazirX was hacked

Highlights

WazirX claims to have a total ed base of 16 million
The company says 4.4 million s have crypto balances on WazirX
Withdrawal of crypto balances from WazirX remain suspended

ment

WazirX, which suffered a loss of over $230 million (approximately Rs. 1,900 crore) in a hack in July, is now working to restructure its finances. In a recent affidavit, the exchange revealed that only 441 s have ed the moratorium appeal filed by its majority stakeholder, Zettai, in a Singapore court. With two million monthly active s, according to data shared with Gadgets360, this means just 0.02 percent of WazirX's base has backed the steps taken toward finalising a restructuring and compensation plan.

A WazirX team issued its first affidavit, informing s that it could take up to six months to finalize a financial reorganization plan, including steps to assist s in recovering their funds.

This week, WazirX issued its second affidavit, revealing recent communication details with its s.

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“As of the morning of 9 September 2024, Zettai received more than 1700 emails from the platform's s in connection with the moratorium application and is in the process of ing the received. Of the 500 emails verified to date, 431 are in , representing liabilities amounting to about $9,200,000 (roughly Rs. 77.2 crore) in value,” the affidavit viewed by Gadgets360 said.

Nischal Shetty, the co-founder of WazirX and director of Zettai, has been posting updates related to the proceedings on X. On August 28, Shetty announced that he personally filed the 52-page first affidavit, presenting the situation directly to WazirX's community .

“One key factor in our timeline for restructuring is how quickly we can all come together and agree on a path forward. We need to be united in this effort. Your and collaboration are crucial to making this happen,” Shetty had said.

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The latest developments suggest that the majority of WazirX s have not ed its restructuring efforts. Meanwhile, of India's crypto community are urging others to file scam reports against WazirX with Singapore's financial authorities.

I urge #wazirxhack victims to head to the Monetary Authority of Singapore (MAS) Us page and file a scam report about WazirX.

It might take some time (about 30min.) to file a police complaint, but it's worth more than months of fooling by @WazirXIndia & @NischalShetty pic.twitter.com/G59MWDtJnu
— Prashant Jha (@_prashantjha) September 12, 2024

Many #WazirX s are in pain, but fear filing police complaints, thinking it will lead to harassment. We need to realize that the police are here to help, and filing a complaint is our right. Together, we can hold those responsible able. pic.twitter.com/SKWj4CdOVf
— Justice for WazirX s (@IndiasCrypto) September 11, 2024

On July 18, a multi-signature wallet belonging to WazirX, which was under the oversight of Liminal Custody, was hacked, resulting in a loss of over $230 million (approximately Rs. 1,900 crore) and leaving s in distress. Currently, crypto withdrawals on the platform remain suspended. While 34 percent of s' INR funds remain frozen pending the completion of the investigation, the remaining 66 percent of INR funds can be withdrawn by the s.

A WazirX spokesperson stated that 4.4 million of the total ed base of 16 million have crypto balances on the platform. According to its second affidavit, the total number of individual platform s is over 4.2 million, and there are 617 corporate platform s. The claim amount for these s, as per the document, exceeds $546 million (roughly Rs. 4,585 crore). Gadgets360 has reached out to the exchange for an official explanation of this figure, and a response is awaited.

In a recent virtual town hall meeting with the media, Shetty and other of the WazirX team stated that unless a white knight investor decides to provide a fund infusion, the company's six-month timeline for financial restructuring will remain in place.

The company has partnered with Singapore-based financial restructuring firm Kroll for assistance.

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Further reading: Nischal Shetty

Radhika Parashar

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Radhika Parashar is a senior correspondent for Gadgets 360. She has been reporting on tech and telecom for the last three years now and will be focussing on writing about all things crypto. Besides this, she is a major sitcom nerd and often replies in Chandler Bing and Michael Scott references. For tips or queries you could reach out to her at [email protected]. More