Athira Sethu
Kochi, 7 October 2024
India’s leading cryptocurrency exchanges, WazirX, which recently lost $230 million to a cyber-attack in July, has said it will set up a 10-member committee of creditors (CoC) as part of its recovery plan. This committee will be formed by October 9, 2024.
According to the company, the creditors, in this case, will be the users affected by the huge cyberattack on the crypto exchange.
Notably, WazirX lost nearly 45% of its funds in the cyber theft, which is considered as one of the biggest such attack on any exchanges recently.
In September, a Singapore court had granted a four-month moratorium to Indian cryptocurrency exchange WazirX, within which the embattled firm will restructure its business without worrying about legal proceedings.
Subsequent to this order, WazirX is now planning to form a committee to restructure its business after the severe cyberattack. However, the company in a recent townhall has said that even after restructuring, it would only be able to return 55-57% of the total money lost in the cyber heist.
The CoC selection will focus on the distribution of creditors by count and value to ensure adequate representation.
“The Company will first establish a “Contingent Creditor Pool” by segmenting Creditors into tranches of 10% each based upon the total value of Claims (each a “Tranche”) – Creditors will be sorted in terms of smallest Claims to largest Claims, with this overall list being broken into 10 separate Tranches each representing 10% of Claims, with the sum of all Tranches amounting to $546.5m of Claims,” the exchange said in a blog post.
Investment in crypto assets is not regulated by Indian authorities though it is not treated as illegal.
