The recent supportive vote regarding WazirX’s restructuring plan signals a pivotal moment for its users as they inch closer to retrieving their lost cryptocurrencies.
WazirX’s Restructuring Gathers Momentum Amid User Support
WazirX, a prominent Indian cryptocurrency exchange, faced a significant setback last July when a devastating hack resulted in losses of around $235 million. This alarming incident forced the platform to suspend withdrawals, leaving many users anxiously awaiting the return of their funds.
However, recent developments suggest a potential resolution. According to WazirX’s official blog post, an impressive 95.7% of voters approved the revised restructuring strategy.
The voting took place from July 30th to August 6th, giving creditors the opportunity to voice their opinion on the revamped restructuring initiative. This revote follows an earlier approval in March, where 93.1% of participants showed support, prompting questions as to why a second vote was necessary.
The need for a revote arose when Zettai PTE LTD, the Singaporean firm managing WazirX’s crypto reserves, faced difficulties in obtaining legal sanction from the Singapore High Court due to regulatory hurdles.
In light of earlier setbacks, WazirX returned to court with an updated proposal, designating its Indian parent company, Zanmai Labs, to manage user withdrawals instead of Zettai.
The results of the latest voting are clear: a robust 95.7% of users approved this new direction, representing 94.6% of the total value of approved claims among creditors.
Nischal Shetty, the founder of WazirX, remarked, “Achieving such a high level of approval in a second vote is indicative of our dedication to a fair and transparent restructuring process aimed at expediently returning funds to our users.”
The following steps involve WazirX returning to the Singapore High Court to seek affirmation of the newly approved scheme. An email sent to creditors confirmed that legal documents have already been submitted ahead of the previously scheduled date of August 21st.
Shetty further mentioned, “Once the Singapore Court endorses the Scheme, we aim to resume operations within 10 business days of its enactment.”
Adding to the scene, another Indian crypto platform, CoinDCX, suffered a $44 million hack recently, eerily coinciding with the one-year anniversary of the WazirX breach, making users wary about security protocols across exchanges.
Current Bitcoin Price Trends
Bitcoin made a brief recovery towards $117,000 on Monday; however, the cryptocurrency’s upward momentum seems to have dwindled as it now hovers around $115,600.
