WazirX has announced that it is planning to keep all the crypto assets deposited on its platform after the major cyberattack of Rs. 2000 crores in cryptocurrencies hostage until they are able to start the distributions of funds affected by the hack.
Although these funds are unrelated to the hack itself, the exchange’s management has tied their release to its broader restructuring plan, leaving users uncertain about when or how much of their funds they will get back.
This means a lot of users can’t access their digital asset deposits, having no relation to the hack. This has led to a lot of anger among them, but Niscahal-led WazirX management continues to doge this issue.
The exchange has stated that post-hack deposits will be returned in the same token denominations, “to the extent possible,” but only after the “Effective Scheme Date.”
The exact date for fund returns remains undefined, and WazirX has provided no clear timeline or assurance regarding the recovery process. Users have accused the exchange of failing to provide transparent communication and actionable updates, further exacerbating their concerns.
The management of WazirX has also confirmed that if its restructuring plan is not approved by the court and credits, these funds will remain frozen indefinitely.
This is because the exchange plans to prioritize resolving other financial issues before releasing these locked funds. This conditionality has fueled complaints, with users criticizing the exchange for a lack of clear communication and a proper resolution strategy.
As part of the recovery effort, Zettai, WazirX’s partner, aims to buy back recovery tokens and maximize creditor recoveries over the next three years. This process will depend on future net profits and the recovery of illiquid wallet assets and stolen tokens.
The situation has sparked outrage among affected users, who are demanding a straightforward resolution and immediate access to their funds.
In December, WazirX users faced over Rs 50 crore losses as the value of WRX, the exchange’s token, plummeted by 90% after its delisting from Binance.
Also Read: CoinSwitch Tries To Woo WazirX Users with Rs 600 crore Plan
