- New WazirX recovery plan may finally unlock frozen user funds.
- The court reopens the case but demands a fresh vote from creditors.
- Zanmai replaces Zettai to ease regulatory hurdles in distribution.
WazirX CEO Nischal Shetty has revealed a crucial update about the exchange’s recovery plan following the massive $230 million hack in 2024. According to Shetty, the Singapore High Court is now reviewing a revised recovery proposal.
If approved, this plan could allow WazirX to restart fund distribution in just a few weeks, providing a long-awaited solution for affected users.
Regulatory concerns prevented the court from accepting the original recovery plan. However, Shetty stated that the court is ready to reconsider the proposal, although there is a requirement: the creditors will have to vote again.
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The most significant modification in the new plan is that the fund release will be controlled by Zanmai, an Indian organization already dealing with WazirX, not by Zettai, the company initially assigned to the duty.
This change is likely to facilitate compliance issues since Zanmai is already registered with the regulatory bodies in India.
Could Zanmai’s Involvement Be the Key to WazirX’s Recovery?
Once the creditors cast their votes, WazirX is ready to act swiftly. Shetty confirmed that if the new proposal is approved, fund distribution could begin within weeks, providing hope for those who have been waiting for months.
However, many users remain doubtful, given the numerous delays and lack of communication in the past, viewing this new scheme as another empty promise.
The 2024 hack dealt a severe blow to WazirX’s reputation. Users were angry not only about the hack but also about the manner in which the platform referred to it.
Claims that the company had poor communication and tried to make users who suffered pay to restore everything to its original state were not taken lightly, and restoring trust will be a challenging experience.
However, it might be a step towards increasing regulation and consent to the recovery process by involving Zanmai.
If the proposal is approved, it could mark a turning point in WazirX’s recovery journey, but if the vote fails, the platform could find itself back at square one, leaving users in limbo once again.
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