WazirX, which suffered losses of over $230 million (roughly Rs. 1,900 crore) in a hack in July, is now working on restructuring its finances. In a recent affidavit, the exchange revealed that only 441 users supported the moratorium appeal filed by its majority shareholder, Zettai, in a Singapore court. With two million monthly active users, according to data shared with Gadgets360, this means that only 0.02 percent of WazirX’s user base supported the steps taken to finalize a restructuring and compensation plan.
A moratorium appeal essentially buys the requesting entity a month of breathing time, but it can be extended. In August, when Zettai filed the appeal in Singapore, the WazirX team issued its first affidavit, informing users that it could take up to six months to finalize a financial reorganization plan, including steps to help users get their money back.
This week, WazirX published its second oath of office, revealing details about recent communications with its users.
“As of the morning of September 9, 2024, Zettai has received over 1,700 emails from the platform’s users in connection with the moratorium application and is in the process of verifying the support received. Of the 500 emails verified so far, 431 are in support, representing liabilities worth approximately $9,200,000 (approximately Rs. 77.2 crore),” the affidavit seen by Gadgets360 reads.
Nischal Shetty, co-founder of WazirX and CEO of Zettai, has been posting updates on the proceedings at X. On August 28, Shetty announced that he had personally submitted the first 52-page affidavit, presenting the situation directly to WazirX community members.
“A key factor in our timeline for restructuring is how quickly we can all come together and agree on a path forward. We must be united in this effort. Your support and cooperation are critical to making this happen,” Shetty had said.
The latest developments suggest that the majority of WazirX users have not supported the restructuring efforts. Meanwhile, members of the Indian crypto community are urging others to file scam reports against WazirX with the Singapore financial authorities.
A lot of #WazirX Users are in pain but are afraid to report to the police because they think it will lead to harassment. We need to realize that the police are there to help, and that filing a complaint is our right. Together we can hold those responsible to account. photo.twitter.com/SKWj4CdOVf
— Justice for WazirX users (@IndiasCrypto) September 11, 2024
On July 18, a multi-signature wallet of WazirX, which was overseen by Liminal Custody, was hacked, resulting in a loss of over $230 million (approximately Rs. 1,900 crore) and leaving users in dire straits. Currently, crypto withdrawals on the platform remain suspended. While 34 percent of users’ INR funds remain frozen pending the completion of the investigation, the remaining 66 percent of INR funds can be withdrawn by the users.
A WazirX spokesperson stated that 4.4 million of the total registered user base of 16 million have crypto balances on the platform. According to the second statement, the total number of individual platform users is over 4.2 million and there are 617 corporate platform users. The claim amount for these users, according to the document, exceeds $546 million (approximately Rs. 4,585 crore). Gadgets360 has reached out to the exchange for an official explanation of this figure and a response is awaited.
During a recent virtual meeting with the media, Shetty and other members of the WazirX team stated that unless an investor decides to inject money, the six-month timeframe for financial restructuring of the company remains intact.
The company has partnered with Singapore-based financial restructuring firm Kroll for help.
