As a seasoned crypto investor with a knack for navigating through the tumultuous seas of digital currency markets, I must admit that the recent developments at WazirX have left me both concerned and intrigued. The swift advancement of Phase 2 of INR withdrawals is certainly a welcome move, but it’s the behind-the-scenes drama that has piqued my interest.
WazirX has accelerated the second phase of Indian Rupee (INR) withdrawals, allowing users to withdraw up to 66% of their INR holdings instantly. This action, initially planned for September 9th, is aimed at improving user access and demonstrates the platform’s dedication to supporting its users during this period of transition.
Amidst these ongoing developments, Zettai (the parent company of WazirX) is actively seeking contact with 11 prominent cryptocurrency exchanges and trading companies, hoping to find “white knights” who can provide emergency financial aid or establish collaborative partnerships.
In a recent gathering, Nischal Shetty, one of the founders of WazirX, disclosed that the company is aggressively searching for possible investors, or what he referred to as “white knights,” with the intention of covering the incurred losses. However, there remains doubt regarding whether investors in WazirX will be fully reimbursed for their initial investments.
According to Jason Kardachi, managing director at Zettai’s consultancy firm Kroll, it seems doubtful that the company can fully repay the investments lost. In the most optimistic outcome, investors might recover around 55% to 57% of their original investment.
Each of the eleven participating businesses manages anywhere from 5.5 million to 100 million customers, with daily transaction volumes ranging from $5 million up to a staggering $4 billion.
The talks started recently, following Zettai’s application to the Singapore High Court last week for a halt, which came after the July 18 incident where cryptocurrency assets worth more than $230 million (approximately ₹2000 crores) were stolen.
The reorganization process of WazirX is anticipated to last for at least half a year. Shetty elaborated that this duration encompasses the intricate tasks required to develop a recovery strategy and takes into account the input from the company’s approximately 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.
Following Binance’s purchase of WazirX in 2019, disputes concerning ownership have arisen. In the midst of ongoing legal struggles over control and operational authority, it is now Zettai that manages WazirX’s assets.
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2024-09-03 08:20