Indian crypto exchange Wazirx has defended its restructuring strategy in response to the July 18 cyberattack that led to the theft of over $230 million. The company emphasized that this approach is the quickest and most legally sound way to address these challenges. “This is not bankruptcy or liquidation since that will take several years,” the exchange’s co-founder assured users.
Wazirx Defends Restructuring Decision — Founder Assures 'Not Bankruptcy or Liquidation'
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Wazirx Pursues Restructuring Path After $230 Million Cyberattack
Indian cryptocurrency exchange Wazirx announced on Saturday that it is pursuing a restructuring strategy to address the impact of the July 18 cyberattack, which resulted in the theft of over $230 million. The exchange detailed on social media platform X:
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.
Wazirx announced Friday that it will resume INR withdrawals in a phased manner starting Aug. 26. Due to the attack, cryptocurrency withdrawals remain suspended as there are insufficient ERC-20 token assets to meet users’ liabilities. Wazirx plans to use a Singapore Scheme of Arrangement to ensure a fair distribution of the remaining crypto assets.
Wazirx assured users that its primary objective is to assist them in recovering as much as possible while exploring ways to enhance value. The company further shared: “Moreover, we are actively pursuing various legal avenues and bounty programs to recover stolen assets. These efforts are ongoing, and we remain fully committed to achieving the best possible outcome for our users.”
However, the exchange cautioned: “Unfortunately, there are external parties, not invested in the platform, who may attempt to prolong this situation for their own reasons. Their intention appears to be maintaining uncertainty rather than finding a resolution.”
Nischal Shetty, co-founder of Wazirx, clarified that X Saturday the crypto exchange is not undergoing bankruptcy or liquidation. He stressed:
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.
He noted that complete details of the restructuring process will be provided next week, with further explanations through blogs and video AMAs to follow. Wazirx encouraged caution among users, advising them to be wary of individuals who might exploit the situation for personal gain, and reiterated its commitment to finding an efficient resolution.
What do you think about Wazirx’s decision to pursue a restructuring strategy? Let us know in the comments section below.
