In a tweet earlier as we speak, Nischal Shetty, founder and CEO of WazirX, India’s embattled crypto exchange, revealed a key element of the corporate’s ongoing restructuring efforts. Shetty confirmed that WazirX will distribute property to customers in crypto tokens, not fiat or stablecoins.
WazirX’s Distribution Plan
Pending approval of the proposed restructuring scheme, customers will obtain a proportional share of liquid property primarily based on their token holdings as of July 18, 2024. The plan addresses excellent creditor claims and ensures distributions match customers’ holdings on that date.
“Distribution will be in tokens (as currently visible in your portfolio),” Shetty tweeted. He emphasised that the corporate’s long-term objective is to “bring back maximum value” for customers and collectors.
According to the FAQ posted alongside Shetty’s tweet, customers will have the ability to calculate their anticipated claims utilizing the Rebalancing Calculator. This software will show the USD and INR worth of their shares as of 1 PM IST on July 18, 2024. The precise distribution of property shall be completed in cryptocurrency tokens, reflecting their worth on the rebalancing time.
How WazirX Got Here
Four months in the past, WazirX was hit by a big safety breach involving one among its multi-signature wallets. The breach led to the theft of over $230 million in tokens, together with Shiba Inu (SHIB), Ethereum (ETH), and different property. Notably, the stolen funds represented greater than 45% of the exchange’s whole reserves reported in a June 2024 replace.
In response to those losses, WazirX initiated a restructuring course of in Singapore to deal with its excellent money owed. Despite efforts to get well the stolen property, progress has been restricted.
Interestingly, the exchange can also be exploring the launch of a decentralized exchange (DEX) to cut back counterparty danger sometimes related to centralized platforms.
While challenges stay, Shetty’s feedback recommend WazirX is targeted on maximizing worth and rebuilding belief with customers and collectors.
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