WazirX has announced the initiation of Phase 2 of INR withdrawals, which was originally scheduled for September 9th. This move aims to enhance user access and provide support during challenging times.
Phase 2 of INR Withdrawals
WazirX users can now access up to 66% of their INR balances. This change, initially scheduled for September 9th, is intended to improve user accessibility to their funds.
Seeking Investors and Financial Support
WazirX's parent company, Zettai, has approached 11 major crypto exchanges and trading firms in search of 'white knights' to secure emergency funding or partnerships. Nischal Shetty, co-founder of WazirX, revealed that the company is actively seeking investors to cover losses. Despite these efforts, uncertainty remains regarding full compensation for investors. Jason Kardachi, managing director at Zettai's advisory firm Kroll, mentioned that even with support, it is unlikely that the company will be able to make investors completely whole. The best-case scenario would see a return of between 55% and 57% of the lost funds. The 11 involved companies handle between 5.5 million and 100 million users, processing daily transactions ranging from $5 million to $4 billion.
Restructuring and Binance Conflict
WazirX's restructuring process is expected to take at least six months. Nischal Shetty explained that this timeframe accounts for the complex work involved in creating a recovery plan and incorporating feedback from the company's 4.3 million creditors. The town hall also highlighted an ongoing dispute between Zettai and Binance over WazirX's ownership, creating confusion about who is responsible for users' crypto balances. Shetty noted that finding a resolution without a third-party takeover is crucial due to this ownership dispute. Since Binance's announced acquisition of WazirX in 2019, ownership issues have surfaced, with Zettai managing WazirX's assets amid ongoing legal battles over control and operational rights.
In conclusion, WazirX continues to navigate challenges, ensuring user access to funds and seeking investors for financial support. The restructuring process and resolution of disputes with Binance will be crucial for the company's and its users' future.
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