Even with possible white knight assistance, WazirX investors may only be able to recover between 55% and 57% of their losses from the cyberattack.
WazirX parent firm Zettai is engaging with 11 crypto exchanges and trading firms to secure emergency funding or establish partnerships aimed at recovering the $235m lost in a July hack, the Economic Times reported Tuesday.
“We’re working to try to get potential investors, white knights, to contribute funding. Those discussions are ongoing,” WazirX co-founder Nischal Shetty said during a townhall on Monday.
According to reports, Shetty and the business’s legal counsel said that WazirX investors might not get their full money back for the losses brought on by the cyberattack, even in the event that white knights decide to step in.
“From a crypto perspective, it is improbable that we can restore people to wholeness,” stated Jason Kardachi, managing director of Zettai’s consulting firm Kroll. He continued by saying that they could recover, at most, between 55% and 57% of the money.
Zettai Consults 11 Major Trading Platforms After $230M WazirX Hack
An estimated 5.5 million to 100 million users and $5 million to $4 billion worth of transactions are processed every day by the 11 companies.
These discussions began after Zettai applied to the Singapore High Court last week for a moratorium. A major cyber attack on WazirX on July 18, which led to the theft of over $230m (₹2000 crore) in crypto assets, prompted this application.
WazirX Restructuring Process to Span Six Months As Ownership Uncertainty Lingers
Shetty went on to say that it will probably take at least six months to complete the restructuring process. This is because, as he pointed out, creating the plan takes a significant amount of work. He added that the opinions of WazirX’s 4.3 million creditors must also be considered.
Shetty displayed a slide during Monday’s Townhall that emphasized the ongoing platform ownership dispute between Zettai and Binance. As a result, the slide pointed out that users holding cryptocurrency balances on the platform are left with uncertainty regarding their contractual counterparty due to the unclear ownership.
He clarified that creative solutions exist to address the issue without requiring an outside party to seize control of the platform. This strategy is required because a third-party takeover is not feasible due to the ongoing ownership dispute.
After Binance’s 2019 acquisition was made public, Zettai has been operating WazirX through Zanmai Labs. But since 2022, the ownership of Binance has been questioned by the public. At the moment, Zettai is in charge of WazirX’s asset management while the two parties fight in court over ownership, asset control, and operational rights.