Wazirx will vote on its restructuring plan to vote for its creditors in the coming weeks after approval by a court in Singapore. The exchange has begun informing creditors about possible outcomes of the restructuring process. Wazirx said in a tweet posted on Tuesday that if creditors vote on the plan, they may have to wait until the decade ends to receive $230 million (about Rs 19 billion) in compensation, while cryptocurrency exchanges are in the program During this period, the hacker was lost in July 2024.
Wazirx outlines dual results of restructuring schemes
The crypto exchange explains two possible outcomes of the decision to approve or reject its restructuring plan. Wazirx said 75% of creditors need to approve the proposal for effectiveness. However, if the plan is rejected, the process of recovering and redistributing funds to creditors will not be until the end of 2030.
Last month, the exchange said creditors’ compensation plans would introduce allocations of recycling tokens (RTS) and recycling rates through the RT purchase mechanism. Additionally, the exchange program features new features to strategically reactivate the Wazirx platform.
However, Wazirx users who lose money in hackers are likely not to receive a full refund. In recent months, many creditors have criticized communication on social media.
The exchange said that if the plan is not approved, it will have to begin the process of resolving its ownership dispute. The exchange notes that this process can be a time-consuming process. “Creditors need to wait for the ownership dispute to be resolved before any next step – unclear and possible extension of the timeline,” Wazirx released a graphical account of the vote results.
The Wazirx-Binance dispute began in 2021 when both sides initially stated that Binance had obtained Wazirx. However, in 2022, Binance denied completing the acquisition, and Wazirx continued to commit to it as its owner. This ambiguity has been going on for more than two years and has not yet been resolved.
The exchange reiterated that even if liquidation is to be settled, the dispute with binance will continue. Wazirx notes: “Compared with restructuring, (asset distribution) will be greatly delayed (asset distribution) in Fiat (FIAT) and may be greatly reduced due to liquidation costs, and since liquidation costs have not improved, hence, Improvements have been made in profit sharing.”
Wazirx estimates that if the program is not approved, it may take up to five years (until 2030) to see any compensation. “Due to unclear and extended timelines in liquidation, creditors may miss any recent bull run. With the distribution of Fiat distributions, market price-driven upside space after the distribution,” the exchange said.
Its parent entity, headquartered in Singapore, has created the program in partnership with financial restructuring company Kroll. In January, Zettai filed the proposal in the Singapore High Court and obtained approval to extend it to creditors.
The exchange claims that the court can approve the deployment of the plan if 75% of creditors approve the proposal by April. After that, the exchange will implement its new business model, which has a decentralized exchange (DEX) and restarts the Wazirx platform. The platform is expected to increase its creditors’ recovery profits through “profit sharing, recovery of liquid wallet assets and White Knight collaboration.”
Essentially, the exchange notifies its creditors that if they approve the plan, they can start the fund recovery process in the coming months, and if they disagree, they must wait until 2030.
Currently, Zettai has a 16-week (about four months) moratorium on court orders to progressively reorganize. The suspended Zettai and Wazirx are not suitable for legal action in the process of making the program effective.
On July 18, 2024, a Wazirx Duo Smart Wallet that violated more than US$230 million (approximately Rs 19 billion) was violated. Cyber Attack. Since then, creditors who lost funds have criticized Wazirx for delaying the compensation process.
