Wazirx Defends Restructuring Strategy After $230 Million Cyberattack, Assures Users of Swift Resolution
Wazirx, an Indian crypto exchange, defends its restructuring plan following a $230 million cyberattack, assuring users that this approach is the quickest and most effective way to recover assets.
India, Bollywood Fever: Indian cryptocurrency exchange Wazirx has defended its decision to pursue a restructuring strategy in response to the July 18 cyberattack that resulted in the theft of over $230 million.
The exchange emphasized that this approach is the fastest and most legally sound way to tackle the situation, reassuring users that it is not a move toward bankruptcy or liquidation.
In an announcement on social media platform X, Wazirx explained:
“We understand that our decision to pursue this restructuring path may raise some concerns, but we want to emphasize that it is the most expedient and legally sound approach to addressing the current crypto-related issue.”
The exchange plans to utilize a Singapore Scheme of Arrangement to ensure a fair distribution of the remaining crypto assets.
Wazirx also announced that INR withdrawals will resume in a phased manner starting August 26, while cryptocurrency withdrawals remain suspended due to insufficient ERC-20 token assets to meet users’ liabilities.
The exchange’s primary focus is on helping users recover as much of their assets as possible while exploring ways to enhance value.
Wazirx is actively pursuing legal avenues and bounty programs to recover stolen assets, with these efforts ongoing.
Co-founder Nischal Shetty clarified on X that Wazirx is not undergoing bankruptcy or liquidation, stating: “This is not bankruptcy or liquidation since that will take several years. Our community did not want us to go in that direction, and we’ve found a more optimal solution.”
Wazirx cautioned users to be wary of external parties who might try to exploit the situation for their own benefit, urging them to remain vigilant.
The exchange assured that detailed information about the restructuring process will be provided in the coming week, including further explanations through blogs and video AMAs.
Wazirx remains committed to resolving the situation as efficiently as possible and continues to work towards achieving the best possible outcome for its users.
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