The WazirX team has officially responded to criticisms regarding their process for selecting members for the Committee of Creditors (COC). The Indian crypto exchange, once a prominent player in the market, faced a major setback three months ago when it lost 50% of customer funds in a hack, resulting in the theft of $235 million worth of cryptocurrency. The stolen funds were laundered using Ethereum’s Tornado Cash mixing platform.
In an effort to address the concerns of affected customers, WazirX CEO Nischal Shetty announced the formation of a committee to represent the voice of each WazirX customer. However, the exchange came under fire from crypto influencers who accused them of creating fake customers to populate the COC.
To address these allegations, WazirX provided a detailed explanation of their selection process for the COC. The creditor base will be divided into 10 equal tranches, each representing 10% of the total claims. From each tranche, 1% of users will be randomly chosen to express their interest in joining the COC. Subsequently, one respondent from each tranche will be selected to form a 10-member COC that will advocate for the interests of creditors during the restructuring process.
By implementing this transparent selection process, WazirX aims to ensure that the genuine interests of customers are represented in the COC, following criticism of their initial approach.
In a recent town hall discussion, WazirX leadership provided updates on the ongoing restructuring efforts and reassured customers that any increase in the value of their crypto assets during the restructuring will not benefit the exchange. Initially, the video from the town hall was made private, but in response to customer demands and criticism, it was made public once again.
As investigations continue into the WazirX hacking incident, Indian authorities have stepped in to uncover the events surrounding the breach. While no new details have emerged publicly, the regulatory bodies are working diligently to address the situation.
In conclusion, WazirX is committed to rectifying the fallout from the hack and ensuring that customers’ interests are protected throughout the restructuring process. The exchange’s transparency in forming the COC and addressing customer concerns demonstrates their dedication to rebuilding trust and restoring the integrity of their platform.