WazirX creditors overwhelmingly back post-hack recovery plan
WazirX Creditors Approve Restructuring Plan Post Hack
In a significant development, the creditors of Indian cryptocurrency exchange WazirX have approved a restructuring plan aimed at resolving the exchange's financial woes following a major hack earlier this year.
WazirX, which is one of the largest cryptocurrency exchanges in India, was hit by a major hack in August that resulted in the theft of nearly $5 million worth of cryptocurrency. The hack led to a significant loss of trust among users and a sharp decline in the exchange's trading volumes.
In the aftermath of the hack, WazirX's creditors, who are primarily a group of institutional investors, had been pushing for a restructuring of the exchange's finances to ensure that the company can continue to operate and meet its obligations.
The restructuring plan, which was approved by the creditors, involves a number of key measures aimed at stabilizing WazirX's finances. These measures include the sale of non-essential assets, the reduction of operational costs, and the implementation of new risk management and security protocols.
The plan also provides for the distribution of a significant portion of the exchange's assets to its creditors, with the aim of ensuring that they receive a fair return on their investment.
WazirX's CEO, Nischal Shetty, welcomed the approval of the restructuring plan, saying that it marked an important step towards the exchange's recovery. "We are committed to rebuilding trust with our users and stakeholders, and this plan is a key part of that process," he said.
The approval of the restructuring plan is seen as a positive development for the cryptocurrency industry as a whole, as it demonstrates that even in the face of significant challenges, companies can find a way to recover and continue to operate.
WazirX's restructuring plan is expected to be implemented over the coming months, with the exchange aiming to emerge from the process as a stronger and more resilient company.