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WazirX’s founder announces that asset distribution will take place in crypto tokens, based on the holdings of users.
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The Rebalancing Calculator allows users to calculate their claims.
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The restructuring plans aims to resolve outstanding debts, and maximize value for both users and creditors
Nischal Shetty revealed in a tweet posted earlier today that the ongoing restructuring of WazirX – India’s embattled cryptocurrency exchange – is a key aspect of the company. Shetty confirmed WazirX would distribute assets in crypto tokens and not fiat or stablecoins.
WazirX Distribution Plan
Users will receive a proportional portion of liquid assets, pending approval of the proposed restructuring scheme. This is based on their token holdings at July 18, 2024. The plan addresses creditor claims that are outstanding and ensures that distributions match the token holdings of users on July 18, 2024.
Shetty tweeted: “Distribution is in tokens, as you can see in your portfolio.” He stressed that the company’s goal is to “bring maximum value” back to users and creditors.
According to the FAQ that Shetty posted alongside his tweet, users can calculate their expected claims by using the Rebalancing calculator. This tool will show the USD and INR values of their shares at 1 PM IST, July 18, 2024. The actual distribution will be in cryptocurrency tokens reflecting the value of the assets at rebalancing.
How WazirX Got here
Four months ago, WazirX suffered a major security breach that involved one of its multisignature wallets. The breach resulted in the theft of more than $230 million worth of tokens including Shiba Inu, Ethereum (ETH), as well as other assets. The stolen funds accounted for more than 45% the total reserves of the exchange reported in June 2024.
WazirX, in response to these losses and to settle its outstanding debts, initiated a restructuring procedure in Singapore. Despite attempts to recover the stolen assets there has been little progress.
The exchange is also exploring launching a decentralized platform (DEX) in order to reduce the counterparty risk that is typically associated with central platforms.
Shetty’s comments indicate that WazirX remains focused on maximizing the value of its services and re-establishing trust with both users and creditors.
