Many Crypto influencers have raised concerns about the pressure being exerted on WazirX creditors in advance of the upcoming vote on the exchange’s restructuring scheme. WazirX, once the leading cryptocurrency exchange in India, has faced significant challenges over the past year following a hacking incident on 18 July 2024, which resulted in the loss of nearly 45% of customers’ funds and the suspension of services. The exchange’s leadership is currently working to secure support from creditors to implement a restructuring plan that would allow the platform to resume operations with court approval.
Creditors are being presented with two options: to vote “Yes” in favor of the restructuring plan or “No,” which could result in liquidation. Some crypto influencers have expressed concerns that the exchange is influencing creditors to vote in favor of the restructuring plan by emphasizing the negative consequences of rejecting it.
If the majority of creditors vote “Yes,” the platform is expected to resume trading in April of this year, with the launch of a new crypto platform to generate additional revenue for compensating customers. Creditors who support the restructuring plan may benefit from improved recovery through profit sharing, recovery of stolen assets, and collaborations with financial backers. On the other hand, if the majority votes “No,” the restructuring plan will be rejected, and the exchange may face liquidation.
The roadmap presented by WazirX highlights the risks associated with voting against the restructuring plan, including potential delays in asset distribution and lower payouts in fiat currency instead of crypto. Critics have pointed out that the roadmap does not adequately address the risks of the restructuring plan itself, such as the potential failure of a new business model or challenges in asset recovery.
Many WazirX customers and crypto influencers believe that the exchange’s leadership is pressuring creditors to vote “Yes” by portraying liquidation as a worst-case scenario with unfavorable outcomes. This has led to concerns that the exchange’s management may be prioritizing its own interests over those of creditors.
In response to the news, the price of WazirX’s native token, $WRX, has seen a positive trend, with a 6.5% increase in trade price over the last 24 hours. This indicates that the majority of crypto traders are optimistic about the exchange’s future plans.
Overall, the upcoming vote on WazirX’s restructuring plan has raised questions about the exchange’s transparency and the interests of its creditors. It remains to be seen how the vote will unfold and what implications it may have for the future of WazirX.