WazirX Takes Down Video Promising Crypto Users Of Full Profits

In a recent move, WazirX has taken down a YouTube video where the management claimed to share 100% profits from any crypto price appreciation in future with users.

In the one-hour town hall session broadcast yesterday (October 4), WazirX cofounder Nischal Shetty and George Gwee, director of Kroll, the legal entity managing the crypto exchange’s restructuring after its INR 2,000 Cr heist, addressed questions from affected users. 

During the Q&A session, Gwee answered a query from a user that what will be the sharing percentage of profits if crypto prices appreciate during the restructuring process.

In the video accessed by The Crypto Times, Gwee said that 100% of profits from crypto price appreciation during WazirX’s restructuring would be shared with users. 

However, after users praised Shetty for the move, the video was made private by WazirX. This has left users frustrated, particularly after the company promised fairness in front of the Singapore court, which granted them a four-month moratorium.

In their second YouTube townhall, WazirX clarified that they would not share past profits with users under the new restructuring scheme. 

During the session, they outlined the restructuring process, explaining that Zettai Pte Ltd’s (WazirX’s parent entity) assets include remaining funds post-hack, recovered tokens, tokens generated from profit sharing after restructuring begins, and any tokens from future collaborations. According to WazirX, Zettai’s total assets are valued at approximately $301.79 Mn.

The development comes hours after WazirX announced plans to form a Committee of Creditors (CoC) by October 9, as the exchange works to restructure its liabilities following a $234 Mn hack that left millions of Indian users with significant losses. 

The 10-member panel, consisting of users affected by the hack, will provide advice and feedback on WazirX’s restructuring plan, according to a blog post by the company.

In July, WazirX experienced a major breach in one of its multisig wallets, resulting in the loss of over $230 Mn in digital assets, accounting for more than 45% of the exchange’s total reserves. 

In response, WazirX has begun a restructuring process to manage its liabilities. Founder Nischal Shetty has deflected responsibility for the breach, attributing it to various external parties. Initially, he blamed custody wallet provider Liminal for security failures, a claim that Liminal refuted last month.

In August, Shetty tried to shift the blame on Binance, alleging that the exchange held a majority of Zettai Labs’ funds. Zettai Labs is the parent company of WazirX. Binance has since rejected any claims of wrongdoing and accused Shetty of ‘falsely implicating’ it in the $230 Mn hack.

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