Following the hack on WazirX, CEO Nischal Shetty has introduced a new recovery plan that is currently under consideration by the Singapore High Court. This move could be significant for users awaiting resolution of their frozen funds.
Court Revisits Recovery Plan
The original restructuring plan was rejected by the Singapore court largely due to regulatory concerns. However, Shetty indicated the court is willing to revisit the case on one condition: creditors must vote again. This change opens up new possibilities for recovery.
Fund Distribution Process
In the new plan, fund distribution will be handled by the Indian firm Zanmai instead of Zettai, which could help ease compliance issues and expedite the process.
Trust Issues Among Users
The $230 million hack that occurred in July 2024 severely damaged WazirX’s credibility. Users have expressed frustration over the handling of the recovery process, citing communication difficulties and delays.
The revised recovery plan for WazirX could provide a much-needed reset for the company if creditors approve it. However, user trust remains uncertain, and the outcome of the upcoming vote will be crucial.
