As a researcher with years of experience in the cryptocurrency market, I find WazirX’s recovery plan to be quite intriguing and ambitious. The approach seems to be a combination of traditional exchange operations and innovative decentralized solutions, which is not something we see every day.
WazirX intends to reactivate trading along with fresh functionalities, a recovery token, and a decentralized platform, all aimed at compensating creditors.
During the company’s fourth online gathering on YouTube, Nischal Shetty, one of the co-founders of WazirX, announced that they will distribute “recovery tokens” to affected parties. These tokens can help them regain 48% of their lost funds by trading them within the platform. The distribution of these tokens will be based on the proportion of each creditor’s initial investment.
To aid in the restoration process, the platform intends to restart trading as early as February 2025. A portion of the earned fees will be used to help creditors by purchasing recovery tokens through a buyback program. Additionally, to boost income, the platform will introduce new services such as crypto staking, an over-the-counter desk, and futures trading.
Apart from the latest products, Shetty mentioned that the company is currently working on creating a decentralized trading platform as an additional feature to our current system. This comes in response to increasing demands from users who are asking for more self-custody solutions.
In simpler terms, the Decentralized Exchange (DEX) comes with its own governance token, which users can employ for trading and earning incentives within this decentralized network. This not only boosts liquidity and user interaction but also contributes to increasing platform engagement. A part of the revenue earned by the platform will be channeled towards restoration projects. Additionally, users have an option to exchange their recovery tokens for DEX tokens.
Alongside various strategies, the platform aims to recoup funds by offloading tokens owned by external entities and is investigating potential collaborations with investor groups known as “white knights” for emergency financial aid.
In our ongoing efforts, we plan to take further legal steps to recover locked or misappropriated funds, making sure these resources are safeguarded for the advantage of those owed money.
In response to a hack that occurred in July, resulting in a loss of $235 million, WazirX has been actively working on recovery measures. This forced the platform to temporarily halt operations while it underwent restructuring proceedings in Singapore, where its parent company Zettai is headquartered.
To date, customers have managed to retrieve 55% of their cryptocurrency assets and 66% of their cash deposits. However, they are currently unable to access the rest of their fiat and cryptocurrency balances.
Currently, WazirX is facing significant examination by regulators, particularly India’s Financial Intelligence Unit who are reportedly investigating the platform. Additionally, a group of affected parties have initiated a class-action lawsuit with the National Consumer Disputes Redressal Commission in India. Moreover, two separate cases against the exchange have been filed in the Delhi High Court.
Read More
- AI16Z PREDICTION. AI16Z cryptocurrency
- Crypto ETPs hit $44.5b in YTD inflows amid Bitcoin surge
- POL PREDICTION. POL cryptocurrency
- Hong Kong Treasury says crypto is not a ‘target asset’ for its Exchange Fund
- Li Haslett Chen to Leave Warner Bros. Discovery Board
- ‘Kraven the Hunter & ‘Madame Web’ Box Office Disaster Blamed on Media Scrutiny
- EXCLUSIVE: Alia Bhatt in talks with Dinesh Vijan for a supernatural horror thriller; Tentatively titled Chamunda
- Shiba Inu, Bonk, Pepe prices rebound: Beware of dead cat bounce
- Crypto x AI makes up just 1% of crypto market cap, says analyst
- Springfield man is convicted for using crypto to finance ISIS operations
2024-11-07 10:18