WazirX has started Phase 2 of INR withdrawals, allowing users to access up to 66% of their INR balances right away. This move, originally planned for September 9th, is meant to give users better access and shows the platform’s commitment to supporting its users during this time.
While this is happening, Zettai, the parent company of WazirX, is contacting 11 major crypto exchanges and trading firms. They are looking for “white knights” to help with emergency funding or to form partnerships.
Jason Kardachi, from Kroll, Zettai’s advisory firm, said that even with help, the company probably won’t be able to pay back all the lost money. The best they can do is return about 55% to 57% of it.
Nischal Shetty, co-founder of WazirX, said that the company is trying to find investors to help with the losses. It’s still unsure if WazirX investors will get all their money back.
The 11 companies each have between 5.5 million and 100 million users and handle daily transactions from $5 million to $4 billion.
These talks started after Zettai asked the Singapore High Court last week for a pause on payments. This request came after a July 18 attack that stole over $230 million in crypto assets.
WazirX’s recovery process can take atleast six month
WazirX’s restructuring will probably take at least six months. Shetty said this time is needed to create a recovery plan and listen to the company’s 4.3 million creditors.
The town hall also talked about a fight between Zettai and Binance over who owns WazirX. This has caused confusion about who is in charge of users’ crypto balances. Shetty said that settling this ownership issue is important to solve the problem without involving a third party.
Since Binance said it was buying WazirX in 2019, there have been problems with ownership. Zettai has been in charge of WazirX’s assets while facing legal battles over who controls and operates the company.
