Crypto Figures and WazirX Users share expectations from Committee of Creditors

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As a seasoned researcher with years of experience in the crypto industry and having witnessed various twists and turns, I find myself deeply concerned about the current state of affairs at WazirX. The recent hack and subsequent events have left users like me feeling vulnerable and questioning the transparency and accountability of the exchange.

On October 15th, the leadership at WazirX exchange plans to hold the initial gathering for the Committee of Creditors (CoC), a confidential group comprising ten individuals who will speak on behalf of the approximately 4.4 million users of WazirX. This CoC will be instrumental in shaping the restructuring plan, or compensation scheme, being developed in response to the Rs 2000 crore hacking incident.

According to WazirX leadership, they selected the ten members of the Committee of Custodians (CoC) at random from a group of 40,000 WazirX users. They have declined to reveal the identities of these individuals due to “security concerns.” The WazirX management has stated that while the CoC’s role will be advisory, they will play a significant part in determining how the exchange conducts an independent vote and establishing the compensation process for the approximately 4.4 million users who were affected.

As a researcher delving into the realm of digital currencies, I cannot help but notice the growing unease among WazirX users due to the perceived secrecy and lack of transparency surrounding the platform’s Community Council (CoC). This situation leaves many questioning whether their genuine concerns will be adequately addressed by CoC members whose identities or even existence remain unverified. To shed light on this issue and propose solutions, The Crypto Times engaged with influential figures in the crypto community and WazirX users across India, aiming to provide insights into how the CoC can more effectively address the needs of its 4.4 million users.

“Publish Transparency Report, No More hiding behind confidentiality,” says Aditya Singh (@cryptooaddy)

We contacted well-known Indian cryptocurrency personality, Aditya Singh, about the important topics that the Code of Conduct (CoC) members should focus on in their discussions. He generously provided us with his expert opinions, which we’ve published exactly as he shared them.

Singh stated that the CoC (Council of members) should request WazirX leadership to release a transparency report detailing the current status of cryptocurrency funds held by WazirX, including the specific wallets where these funds are located. Previously, management had indicated after the hack that they would be moving funds, but as of now, this has not been executed. Regarding the 34% INR (Indian Rupee) user funds that remain unaccounted for, there has been no recent update provided.

As a cryptocurrency investor, I’ve taken issue with the way this platform has handled user funds, specifically holding 100 crores for legal and administrative expenses. I believe that such funds should be securely stored and utilized only for intended purposes, rather than being used in this manner.

Singh stated that it’s important for CoC members to scrutinize how WazirX has set aside 100 crores of user funds for their own costs. They should inquire if WazirX is using this 100-crore fund to compensate their CEOs and employees.

Additionally, he voiced his doubts about the reasoning for constituting a 10-member committee to serve the interests of the approximately 4.4 million users on the WazirX trading platform.

Singh pointed out that it’s questionable to make a decision based on 10 randomly selected individuals, as they might not be well-informed about all the user issues and may not fairly represent everyone. He suggested instead, WazirX could establish an open platform where all users can express their concerns, and then group similar questions together to address them effectively.

“Focus should be on compensation and recovery of funds,” says Ajay Kashyap

Crypto expert Ajay Kashyap also voiced his opinions regarding the WazirX breach, offering suggestions for questions that Community Council (CoC) members might pose to the exchange’s administration.

“Few questions that CoC members could ask is that how soon the compensation and recovery process will initiate and how can WazirX ensure that the proposed strategy is fair and transparent for all users. Other questions that can also be asked include how WazirX can improve communication and transparency with users and what legal frameworks and regulatory compliance measures need to be addressed in light of the hack. Also WazirX must tell, how are they collaborating with law enforcement to trace and recover stolen assets,” said Kashyap.

“Give us our money or sell the company: WazirX Users

The members of The Crypto Times team contacted several users who were impacted by the issues at WazirX, asking about their hopes for the CoC meeting taking place on October 15th. One such affected user, known as @cryptoschool13 on various platforms, shared his expectation while choosing to stay anonymous. This individual had initially invested a sum of 2 lakh rupees in the exchange.

The user @cryptoschool13 proposed that the exchange should initiate immediate withdrawals of funds for all users right away. Afterward, the exchange could either secure additional funds or get sold off to cover the total amount we are owed,” said WazirX user.

In a similar vein, the well-known figure in the X community, @indiascrypto, who happens to be a WazirX user, offered his perspectives on the recent CoC gathering.

Conclusion

The leaders at WazirX have announced they will share the findings from their October 15 meeting with Council of Contributors (CoC) members. Yet, as the identities within the CoC remain confidential, the public is still anticipating a more transparent disclosure.

 

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2024-10-14 17:26