WazirX has come under fire for its decision to allocate INR 100 crores (approximately $12 million) from user funds to cover legal expenses related to the hack and ongoing legal disputes.
Reaction to WazirX Decision
Users of WazirX have expressed outrage over the exchange's use of their funds for legal expenses. In an official statement, WazirX explained that these costs are necessary to ensure the legal and orderly restructuring of the company.
Restructuring Plans
WazirX announced that its parent company Zettai is actively working with potential investors to obtain financing, which may be used to defray costs. A moratorium application has been filed in the Singapore High Court aiming to gain 'breathing space' to find a solution for restoring crypto balances affected by the cyberattack on July 18, 2024.
Future of WazirX and Crypto Trading
If approved, the moratorium will prevent the winding up of the company and halt legal actions against Zettai without the court’s approval. Despite this, users are expected to face up to 43% losses on their overall funds. Crypto trading operations will remain suspended until a restructuring proposal is approved by creditors and sanctioned by the High Court of Singapore.
WazirX’s decision to use user funds for legal expenses has sparked mixed reactions within the community. The exchange maintains that these actions are in the best interest of users and are aimed at recovering their funds, but the implications of this decision continue to be debated.
Comments