WazirX Restructuring Plan Gains Overwhelming Approval: A Step Toward Crypto Recovery
In a significant development, WazirX’s updated restructuring plan has garnered a resounding 95.7% approval from users, setting the stage for a potential recovery of their crypto assets.
WazirX Restructuring: A Journey Back to Stability
The Indian cryptocurrency platform, WazirX, faced a challenging ordeal following a major security breach in July last year. This malicious attack resulted in a loss of approximately $235 million in user funds, nearly half of the exchange’s reserves at that time. Consequently, WazirX halted all withdrawal services, leaving user funds in limbo within the exchange’s custody.
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However, the tide may be turning as the exchange has made a pivotal move toward reactivating its operations. In a recent blog update, WazirX revealed that users have overwhelmingly supported the latest restructuring proposal. The voting process, which took place from July 30th to August 6th, aimed to gauge user consent on the platform’s revised restructuring strategy. This marked the second voting round, following a previous one in March where 93.1% of creditors had endorsed the plan. But why was a revote necessary?
The initial plan faced hurdles when Zettai PTE LTD, a Singaporean entity managing WazirX’s crypto funds, could not secure approval from the Singapore High Court due to compliance issues. In response, WazirX returned to court with an amended proposal, which garnered approval. The revised plan stipulates that Zanmai Labs, WazirX’s Indian parent entity, will oversee user withdrawals instead of Zettai. The revote sought creditor approval for this revised scheme, resulting in an impressive 95.7% endorsement, surpassing the previous vote.
“The strong support in the second voting round reinforces our commitment to a fair, transparent, and efficient restructuring process, enabling users to recover their funds,” stated Nischal Shetty, WazirX’s founder.
The next step involves seeking sanction from the Singapore High Court for the creditor-approved amended scheme. According to communications sent to creditors, WazirX has already filed with the court ahead of the initially planned date of August 21st.
“Upon receiving the court’s sanction, we are poised to resume operations within 10 business days of the scheme’s activation,” Shetty added.
Interestingly, last month, another Indian crypto exchange, CoinDCX, also suffered a cyberattack, losing $44 million. The timing of this incident was uncanny, occurring almost exactly a year after the WazirX breach (July 18th vs. July 19th).
Bitcoin Price Trends
In recent cryptocurrency market movements, Bitcoin experienced a rebound, reaching $117,000 on Monday. However, the asset’s upward momentum seems to have waned, with the current price settling at $115,600.
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