WazirX plans restructuring, seeks white knight for funds and partnerships | Company News
2024-09-02 09:51:59
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According to the firm’s advisor, WazirX customers will lose 43 per cent of their money.
Crypto exchange platform WazirX is looking to restructure its crypto balances so that users can start withdrawing their funds. As part of this restructuring, the company plans to engage with a white knight to provide capital and pursue partnerships and collaborations.
In a virtual press conference conducted by the company along with its financial advisor, Kroll said that the restructuring could take up to six months to complete. The call was attended by Nischal Shetty, co-founder, WazirX; Jason Kardachi, managing director, Kroll; and George Gwee, director, restructuring, Kroll.
According to the firm’s advisor, WazirX customers will lose 43 per cent of their money that they will not be able to recover.
“Around 55-57 per cent is the net of cost that will be required to undertake this restructure. In crypto terms, this is what can be returned to users with the benefit of this restructuring,” explained Jason Kardachi, managing director, restructuring, Kroll.
A restructuring is a plan to distribute assets to users in a pro-rata, equitable way and in crypto (not fiat); it aims to improve token recoveries to users by engaging a suitable white knight to provide capital and pursue partnerships and collaborations.
This would also entail implementing revenue-generating products and mechanisms to share profit with users, tracing and recovering stolen crypto assets, and/or allowing users who need liquidity urgently to withdraw crypto more quickly and exit the restructuring. This allows users who are willing to stay in the restructuring to receive higher recoveries, the company said.
WazirX’s parent company, Zettai, based in Singapore, has applied for restructuring at a Singapore court on August 23. On Tuesday, the Singapore court will take into account creditors’ views in deciding whether to grant a moratorium.
On July 18, 2024, a cyberattack occurred, and crypto assets worth $240 million were stolen. Following this, the platform froze all activities.
First Published: Sep 02 2024 | 3:21 PM IST
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