The WazirX exchange management released a restructuring proposal to compensate affected users. They clarified that any previous years’ profits associated with the platform will not be shared with users.
Image Source: WazirX.com
The WazirX exchange management released a restructuring proposal to compensate affected users. They clarified that any previous years’ profits associated with the platform will not be shared with users.
The exchange has announced a compensation process on a pro-rata basis where users are expected to take a 45% hit on their total investment in WazirX.
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The restructuring scheme was presented by WazirX’s CEO, Nischal Shetty to their users who have lost their funds post the July 18 cyber hack that resulted in Rs 2000 crore worth of cryptocurrencies stolen from the exchange.
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WazirX management laid down the restructuring process where they clarified that assets of Zettai include remaining funds left on the exchange post-hack, any recovered tokens from the hack, any tokens generated from profit sharing after the restructuring process is initiated and any tokens generated from collaboration under any proposed restructuring.
The total assets valuation of Zettai comes to around $301,787, 232 as per WazirX.
Further, the exchange clarified that they have excluded tokens held for trust creditors, ringfenced tokens, cost fund of Rs 100 crore, and profits from the restructuring process.
The management has refused to divulge the exact amount that doesn’t fall under the restructuring process.
When asked by a creditor why WazirX isn’t using the profits generated over the past few years to compensate hack victims, the CEO reiterated that WazirX was sold in 2019, and Zettai doesn’t own any of the profits.
On the question of whether the profits were going to Binance, Shetty replied, ‘I can only speak for Zettai.’
In a separate development, Binance has rejected WazirX’s attempts to shift blame for the loss of $234 million in user funds.
It has called on the Indian exchange to take responsibility for the alleged hack that devastated its customers.
“The WazirX team and Nischal Shetty continue to mislead WazirX customers and the market regarding the relationship between WazirX and Binance,” the blog post wrote.
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