Following a massive cyber attack on July 18 that resulted in the loss of 2000 crore worth of cryptocurrencies, WazirX has presented a restructuring plan to its users.
Restructuring Proposal
WazirX management, along with Zettai Pte Ltd, released a restructuring proposal where affected users will receive compensation on a 'pro-rata' basis. Users are expected to take a 45% hit on their total investment in WazirX. It was clarified that previous years' profits will not be shared with users.
YouTube Meeting
On Monday, WazirX organized a YouTube meeting to present the restructuring plan to users who lost funds. The meeting featured WazirX CEO Nischal Shetty and representatives from Kroll, Jason Kardachi and George Gwee. It was clarified that Zettai's assets include remaining funds on the platform, recovered tokens, and tokens generated from profit-sharing and restructuring.
User Discontent
Many users expressed anger about the management asking them to bear the loss from the cyber hack while refusing to share profits. During the Q&A session, Nischal Shetty clarified that WazirX was sold in 2019 and profits do not belong to Zettai. Zettai is currently undergoing a restructuring process to address the 45% asset deficit relative to its liabilities.
The proposed restructuring scheme aims to fairly distribute available assets among creditors, recover stolen tokens, and explore potential profit-sharing opportunities. If approved, creditors will receive 55% of their claim value in tokens of their choice.
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