A company lawyer said on Monday that customers of WazirX, the Indian bitcoin exchange that was hacked in July and lost $234 million, probably won’t get all of their money back during the restructuring process.
George Gwee, a director at the restructuring company Kroll that works with WazirX, said that customers are not likely to get back at least 43% of the money they put into WazirX. Last week, WazirX asked the Singapore High Court to protect it for six months while it restructures its debts.
For Gwee, the best outcome would be a return of “anywhere between 55% and 57% of the funds.” It said that after the restructuring, WazirX’s main goal will be to give the leftover token assets to users in a proportional way through crypto. The company is talking about how to split the profits from its goods that bring in money, but it didn’t give any specifics.
The Indian crypto industry has been shocked by the hack that happened in July. It is the biggest theft of cryptocurrency in the country’s history. It has been hard for the company to find ways to give people their money back since then. It suggested in July that the “force majeure” loss be shared with everyone.
When WazirX officials spoke to the press, they tried to avoid many questions about their efforts to raise money. The business said it is in talks with an unnamed “white knight,” but the money won’t be raised against equity because of a disagreement with Binance, which is the biggest cryptocurrency exchange in the world. At one point, WazirX and Binance were very connected.
Binance said in a blog post at the end of 2019 that it had bought WazirX, but later denied that it had done so. After a public fight, the bitcoin exchange stopped giving the Indian company tech services in 2022.
When asked about Binance’s ownership of WazirX, the Indian company wouldn’t say anything. Representatives from the company said that selling WazirX as part of the change was not possible when asked about it.
When asked if WazirX could take legal action against Binance and Liminal, the multisignature wallet provider whose system was reportedly hacked, they did not give a clear answer.
Another big Indian cryptocurrency exchange, CoinSwitch, sued WazirX last week to get back assets worth about $9.7 million that were stuck on WazirX’s platform. This puts more pressure on WazirX.
Also Read: After a “force Majeure” Loss of $230 Million, Wazirx Stops Trade
Indian police departments are among WazirX’s clients.
What do you say about this story? Visit Parhlo World For more.
