WazirX is considering a new recovery plan that the Singapore Court has reevaluated, promising to restart fund distribution after the $230 million hack.
The revised plan focuses on transferring fund distribution to Zanmai – the representative enterprise from India, helping to minimize legal barriers. If approved, the process could begin in a few weeks.
MAIN CONTENT
The Singapore court agreed to reconsider the recovery plan on the condition of a re-vote from creditors.
Zanmai – the proposed Indian company to replace Zettai in fund distribution, enhancing legal compliance.
User trust remains a major challenge due to the unsatisfactory experience in handling the previous hack.
Court Reopens the Case, But There’s a Catch
CEO Nischal Shetty confirmed that the Singapore High Court is reconsidering the case after the initial recovery plan was rejected. However, the main requirement is that creditors must vote again for the new proposal.
The current fund distribution plan is no longer carried out by Zettai but has shifted to Zanmai, an Indian company registered with the authorities, which helps process legal matters faster.
"The biggest adjustment is that Zanmai will replace Zettai in the fund distribution if the plan is approved," Nischal Shetty shared on social media in June 2024.
CEO Nischal Shetty, 2024, online
If the Vote Goes Through, Funds Could Start Moving
Shetty said the WazirX team is ready to implement immediately after the vote takes place. The voting date will be announced to users once a final decision is made.
The fund distribution time will be significantly shortened, to just a few weeks, if the plan receives consensus from creditors.
Trust is Still a Major Hurdle
The $230 million hack in July 2024 severely damaged WazirX's reputation. It was not just a case of money loss, but the company's handling of the situation, which lacked transparency and was slow, also caused outrage in the community.
Many users accused WazirX of using pressure tactics to force choices or prolonged waiting in the legal process without clear information.
"Customer trust is the most valuable asset, and we are committed to regaining it with the new plan," Nischal Shetty stated at the internal event in May 2024.
CEO Nischal Shetty, 2024, internal report
A Second Chance for WazirX?
The modified plan involving Zanmai could open a new phase for WazirX in rebuilding and restoring customer trust.
The entire direction depends on the outcome of the upcoming vote. If approved, this will be a major turning point in one of the most notable cryptocurrency recoveries in India.
Frequently Asked Questions
How did WazirX get hacked and how much money was lost?
WazirX was attacked in July 2024, suffering approximately $230 million in cryptocurrency losses, significantly affecting users.What does the court require to reconsider the recovery plan?
The Singapore court requires a re-vote among creditors to accept the new plan.Why was Zanmai chosen instead of Zettai?
Zanmai is an Indian company, legally registered with the regulatory authority, which helps reduce legal risks and expedite the resolution process.When can users reclaim their funds?
If the plan is approved, fund distribution could begin within just a few weeks after the voting date.How can WazirX regain customer trust?
Through transparency in the process and the involvement of a sharp regulated entity like Zanmai, WazirX can rebuild its reputation.
Source: https://tintucbitcoin.com/ceo-wazirx-nischal-shetty-phuc-hoi-sau-hack/
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