- WazirX rolls out a restructuring plan post-hack, with 60% fee cuts and phased INR withdrawals to aid recovery.
- External resistance slows WazirX’s restructuring; Shetty faces criticism for blocking users amid ongoing transparency efforts.
- WazirX’s legal path under Singapore law aims to secure user assets, with full restructuring details promised next week.
Leading cryptocurrency exchange WazirX is moving quickly to address a recent cyberattack that caused $230 million worth of ERC-20 tokens to be lost. In response to the incident, the exchange has unveiled a strategic reorganization strategy.
This approach aims to navigate the challenges while ensuring user asset security. However, the process has been met with resistance from certain external parties, which WazirX claims are deliberately attempting to derail their efforts.
Phased Recovery Plan and Legal Measures
The crypto exchange’s response to the hack includes a phased plan to restore financial operations, beginning with the reinstatement of INR withdrawals. The company also plans a 60% reduction in withdrawal fees, aiming to ease the financial burden on users during this transition.
This restructuring is part of a broader initiative to strengthen security and recover swiftly from the hack. Consequently, the exchange is also pursuing a legal restructuring pathway under Singapore’s jurisdiction. This involves a court-approved Scheme of Arrangements, providing a structured framework for fair asset distribution.
Social Media Controversy and Transparency Efforts
WazirX co-founder Nischal Shetty has blocked numerous users including crypto analysts, and former WazirX users after they raised concerns or sought answers about the ongoing issues.
This collective silencing has sparked widespread outrage, with many feeling that Shetty’s actions are counterproductive. Despite this, WazirX remains focused on resolving the crisis and has promised to release complete details of the restructuring process next week.
Commitment to Transparency and Future Plans
Users have also been cautioned by the exchange to move cautiously and to be alert for anyone who might try to take advantage of the situation for their own gain. WazirX has demonstrated its commitment to openness by announcing that it will be posting more details via blogs and video AMAs. Besides, Shetty emphasized that the exchange is not undergoing bankruptcy or liquidation, clarifying that they have found a more optimal solution.
The exchange is taking steps to address the situation. The company’s restructuring plan, combined with legal measures, aims to restore confidence and ensure the security of user assets.
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