The WazirX team officially responded to criticisms regarding their process for selecting members for the Committee of Creditors (COC).
WazirX, once a leading Indian crypto exchange, suspended operations three months ago after losing 50% of customer funds due to a hack, amounting to $235 million in stolen cryptocurrency. The funds were laundered via Ethereum’s popular mixing platform, Tornado Cash.
A week ago, WazirX CEO Nischal Shetty annnouced to setup a committee to support voice of each WazirX customer.
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Facing accusations from crypto influencers of creating fake customers to form the COC, WazirX released a detailed explanation of their selection process. The creditor base will be split into 10 equal tranches, each representing 10% of the total claims. From each tranche, 1% of users will be randomly invited to express interest in joining the COC. Finally, one respondent from each tranche will be selected, forming a 10-member COC to represent creditors’ interests in the restructuring process.
WazirX emphasized that this transparent process will ensure the genuine interests of customers are represented, after backlash over their initial selection approach.
WazirX’s Third Town Hall Discussion
Just a few days ago, WazirX leadership addressed the ongoing restructuring and assured customers that any increase in the value of their crypto assets during the restructuring will not benefit the exchange. Initially, the video from the town hall was made private, but following customer demands and criticism, it was made public again.
Investigation in WazirX exchange Just a couple of days ago, Indian authorities responded to this matter to uncover the actual events surrounding the incident. So far, no new details have emerged in the public domain about the WazirX hacking incident, but it will be interesting to see the efforts by the regulatory bodies in this situation.
Read also: CryptoCom Exchange Files Suit Against American Securities Regulatory Body SEC
WazirX Responds to Criticism Over Committee Selection Process, Ensures Transparency
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