As a seasoned researcher with years of experience in analyzing complex situations, I find myself intrigued by the latest developments surrounding Nischal Shetty and WazirX. The recent affidavit filed in the Singapore High Court, detailing an “informal” survey supporting his moratorium application, seems to be a peculiar move, to say the least.
On September 19, Nischal Shetty, co-founder of WazirX exchange, submitted a third affidavit to the Singapore High Court regarding a moratorium application. In this affidavit, he stated that approximately 64,043 users (representing about 95% of respondents) in an “unofficial” survey supported his application. However, it was only five days prior that he added the option for users to choose ‘no’ in the survey.
Based on the details provided in a 72-page affidavit submitted by Shetty, who is the director of Zettai (the parent company based in Singapore that oversees the WazirX platform), it’s reported that a total of 67,299 WazirX users took part in an informal online survey as part of his application for a six-month moratorium. This application was submitted to the Singapore High Court with the intention of halting any legal action against the exchange management for a period of six months, followed by a process for compensating users. The request for this moratorium comes after the hack of WazirX on July 18, which resulted in a loss of approximately Rs 2000 crore.
As per Shetty’s affidavit, during the period from August to September 17 this year, out of a total of 67,299 respondents to his survey, 95% (approximately) expressed their support for his moratorium application. However, it is worth noting that Shetty conducted this informal survey in August and initially only provided the “yes” option to users. It was not until September 12, at the direction of a Singapore High Court judge, that the WazirX management added the options of “no” and “no position” to the survey. This change was made just five days before Shetty collected the survey results.
Furthermore, it’s important to note that approximately 4.4 million active WazirX users are currently waiting for fund withdrawals. This significant user base represents around 1.4% of Nischal’s total support so far. Moreover, Nischal also mentioned receiving support from 961 users via specific emails. In his affidavit, Nischal details the self-declared rules that any users who gave their consent to the moratorium prior to it being an option in the survey will be automatically counted as supporters.
After a two-month period following the hack on WazirX on July 18, which led to a loss of approximately 20 billion rupees in cryptocurrencies that belonged to users, the third affidavit from Shetty has been submitted. Since the hack, WazirX’s management has pointed fingers at their former security partner Liminal Custody for not preventing the breach and also accused Binance, their previous partner, of failing to share responsibilities regarding user crypto funds. However, both Binance and Liminal Custody have rejected these accusations made by Shetty and instead blamed him for poor management.
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2024-09-19 21:24