WazirX pushes for restructuring in Singapore as the fastest way to resume crypto operations

During a virtual town hall meeting, WazirX and Kroll pushed for restructuring under the Singapore legal system, in spite of WazirX’s ownership dispute

While the moratorium is in progress, users will not be able to access their crypto, which has angered many [File] | Photo Credit: REUTERS

During a digital town hall meeting on Monday (September 2, 2024), cryptocurrency exchange WazirX and financial advisory solutions company Kroll pushed for seeking a moratorium through the Singapore legal system, even as aggrieved users demanded access to their frozen funds after the July hack that led to the loss of over $230 million.

The moratorium would serve to prevent legal action from being taken against WazirX while it undergoes a restructuring, in order to work on a damage control proposal that creditors would vote on and the court would approve.

While the moratorium is in place, users will not be able to pull out their crypto, which has angered many. The legal process could take at least six months, which WazirX claimed was the fastest option.

During the town hall, WazirX referenced its ownership dispute with crypto exchange Binance.

However, the exchange did not provide solid details about the dispute, which concerns the question of whether or not Binance owns WazirX. While Binance has denied ownership, WazirX claims this is untrue.

WazirX clarified that while crypto assets were frozen for the duration of the legal proceedings, INR funds would be opened up in phases.

WazirX and Kroll urged users to support the moratorium through Singapore while it tried to explore options such as business collaborations with other crypto players, or a “white knight” to rescue to exchange.

During the town hall, users were warned that 100% recovery of funds was unlikely.

WazirX investors have taken to X to express their difficulties and pain after their funds were abruptly frozen. Many criticised Shetty for his slow updates, and a plan to spread out the loss amongst all users.