To Facilitate Restructuring, WazirX will Establish a Committee of Creditors

Nitin Konde, Varun Bhardwaj

Oct 10, 2024 — 2 min read

WazirX Forms Committee of Creditors for Restructuring

In an effort to support the company's restructuring efforts in the wake of the $234.9 million cryptocurrency theft, WazirX said on October 2 that it was in the process of establishing a Committee of Creditors (COC). According to a blog post, the committee will be made up of ten COC members, whose identities would be kept secret from the credit base.

In addition to advocating for creditors' interests, the members will be in charge of keeping an eye on the restructuring's advancement and reporting back to the corporation on creditor preferences and priorities. The company and its advisors anticipate sending emails to creditors on October 3 in order to finish Phase 1—the creation of a contingent creditor pool—according to the blog post. By October 7, these creditors have the opportunity to express their desire to join the COC. Phase 2—the prospective COC member pool—will be finished by October 8; on October 9, the committee will be established.

Security Breach Resulting in Revamping

After its Safe Multisig wallet experienced a security issue in July, WazirX temporarily stopped accepting withdrawals. It stated that assets valued at $234.9 million had been moved to an unidentified place. Up to 66% of users' INR holdings will soon be available for withdrawal, according to a statement made by WazirX in August.

Zettai Pte Ltd, the parent company of Zanmai Labs, which runs WazirX in India, filed a request for a moratorium under Section 64 of the Insolvency, Restructuring, and Dissolution Act, 2018 with the High Court of Singapore in September. Last week, the company was given a four-month respite by the court, which enabled it to initiate a restructuring procedure and reimburse a portion of the monies to the impacted users.

During a town hall meeting for journalists last month, the business stated that it is exploring several options, including partnerships and collaborations, in response to the cyberattack. It refuses to provide further details, though.

About WazirX

WazirX has developed beyond being just a digital asset trading platform since its founding in 2018. The path has been driven by enthusiasm, determination, and a desire to provide all Indians with democratised access to cryptocurrency. WazirX claims to be the market leader in terms of transaction volumes, boasting a listing of over 350 cryptos and tokens and over 16 million users. This solidifies WazirX's position as a reliable leader in the nation's cryptocurrency market.

According to WazirX, its goal is to put India at the forefront of the cryptocurrency revolution. The company always innovates to create the safest, most dependable, and most intuitive platform possible. Additionally, it is committed to building a regulated ecosystem and boosting credibility and confidence in the bitcoin space.