WazirX, an Indian cryptocurrency exchange, has announced its sixth townhall meeting. The meeting has been scheduled on February 12, 2025 at 5:30 PM IST. The main aim of this meeting is to have a session with the creditors and provide clarity regarding the restructuring scheme.
The topics that will be discussed include reviewing claims, raising disputes, inspection records, and understanding the voting process. These topics are being covered so that the creditors are aware and have clarity around the next steps.
Background on Restructuring Efforts
The platform was hacked in July 2024 and lost $235 million. Since the hack, the platform has been working towards restructuring plan to compensate the affected users. With the restructuring plan, WazirX proposed offering creditors a rebalanced amount to be credited by April 2025, provided they agree to vote for this proposal. If the creditors reject the proposal, the dispute may escalate into a prolonged legal battle, potentially lasting until 2030.
In recent development, WazirX CEO Nischal Shetty also made public that the platform plans on issuing “Recovery Tokens” to the creditors. These tokens represent the remaining debt and can be encashed in the future as the platform gets on the track and launches its decentralized exchange (DEX).
Community Reacts
WazirX has been on its toes and has been making efforts to keep the creditors informed and involved through the entire process. Currently, the townhall meeting has been organized for the same reason but the community is upset. Initially, the rebalancing sheet indicated that 85% of funds will be returned, with 15% given as the recovery token.
However, after rebalancing, the actual return has been around 50%, which is lower than what was promised and this has caused a sense of dissatisfaction within the community. Due to the same reason, many of the community members are advising voting against the restructuring plan.
WazirX has announced the completion of rebalancing process and is inviting the creditors to raise disputes. Creditors can raise their disputes through the Claim Dispute Form between February 10 and February 19, 2025.
The future of WazirX is in the hands of the creditors and all we can do right now is wait and watch as the situation unfolds.
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Source: https://www.cryptonewsz.com/wazirx-townhall-meet-amid-community-backlash/