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Sujit Kumar
Oct 3, 2024
by Sujit Kumar

WazirX to Form Committee of Creditors After $230M Hack

wazirx to form committee

Table of contents

  1. COC Responsibilities and Structure
    1. Impact of the Hack and Withdrawal Process
Indian crypto exchange WazirX will establish a Committee of Creditors (COC) by October 9 following the $230 million hack in July. The exchange is treating all users with crypto balances at the time of the hack as contingent unsecured creditors. While the COC will provide feedback and monitor the restructuring process, WazirX is not obligated to implement its recommendations.

High-Value Claims Dominate the Creditor Base

According to Cryptopolitan, 13% of WazirX creditors hold 92% of the total claims, representing approximately 572,000 high-value claims. WazirX had 16 million registered users at the time of the hack, but only 4.4 million had crypto balances, with a small portion holding the majority of the claims.

COC Responsibilities and Structure

The COC will work with WazirX and its advisors to provide input on creditor priorities and monitor progress. The identities of COC members will remain confidential unless disclosed by the member. The selection process will randomly choose 1% of creditors from each tranche based on claim value. COC members are required to attend meetings and follow a strict code of conduct, with inactive members subject to removal.

Impact of the Hack and Withdrawal Process

The hack affected 40-50% of customer funds. WazirX claims that by phase 2 of the recovery plan, up to 66% of funds will be available for withdrawal. The company is currently under a 4-month moratorium granted by Singapore courts, with the COC's formation being a court-imposed condition.

Disclaimer: The views and opinions expressed in this article are for informational purposes only and do not constitute financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
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Wazirx Creditors $230 M
WazirX to Form Committee of Creditors After $230M Hack
Sujit Kumar
Sujit received his Bachelors in Science from the LNMU Darbhanga. He is currently working as a Content Strategist. He has more than three years of professional experience in information systems, security policies, technologies, and Cryptocurrency. He has published 6 books in the area of information security and assurance. He has published more than 50 research articles in leading journals Regarding the Latest and Breaking Crypto News and updates. His research interests include access control, computer forensics, Digital Marketing, Web development, business hacks, player experience, and virtual storytelling.

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