Nischal Shetty, the CEO of WazirX, recently made an announcement on X (formerly Twitter) regarding the distribution of the exchange’s liquid funds to its customers. This decision comes in the aftermath of a hacking incident that occurred four months ago, resulting in a substantial loss of funds for WazirX users. The exchange has been diligently working on restructuring processes and new crypto projects to not only increase revenue but also compensate the affected customers.
In his tweet on December 10, 2024, Nischal Shetty confirmed that WazirX is prepared to distribute all of its liquid funds to customers pending approval from creditors. Despite the complexities involved in the case, Shetty and his team successfully filed the restructuring scheme and are now awaiting approval from creditors.
Responding to a query from Indian crypto influencer Pushpendra Singh about the distribution of funds, Shetty clarified that only the liquid assets would be distributed to customers, with the remaining compensation to be provided by WazirX over the next three years. He expressed his hope that this initial phase would be completed before the peak of the current bull run to maximize benefits for WazirX customers.
However, not all responses to Shetty’s announcement were positive. Some critics accused the WazirX CEO of manipulating customers with his words and demanded clarity on whether users would receive 100% of the crypto withdrawals as indicated by the WazirX rebalancing calculator in mid-February.
The mention of a three-year compensation plan raised concerns among many, as it was deemed a lengthy period that could coincide with the next bull run in the crypto market. The uncertainty surrounding the timeline of compensation and the distribution of funds has left some customers skeptical about WazirX’s intentions.
As the exchange navigates through this challenging period, it remains to be seen how WazirX will address the concerns of its customers and ensure transparency in its operations. The crypto community will be closely monitoring the developments at WazirX as the exchange works towards rebuilding trust and providing fair compensation to its users.