WazirX has advanced Phase 2 of INR withdrawals, enabling users to access up to 66% of their INR balances immediately. The move, originally scheduled for September 9th, is intended to enhance user access and reflects the platform’s commitment to user support during this transition. WazirX Opens 2nd INR Withdrawal phase, Seeks ‘white knights’
In the midst of this development, Zettai, WazirX’s parent company, is reaching out to 11 major crypto exchanges and trading firms in search of “white knights” to secure emergency funding or form partnerships.
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Nischal Shetty, co-founder of WazirX
revealed in a recent town hall meeting that the company is actively seeking potential investors or “white knights” to help cover the losses. Despite these efforts, there is uncertainty about whether WazirX investors will receive full compensation.
Jason Kardachi, managing director at Zettai’s advisory firm Kroll, mentioned that even with support, it is unlikely that the company will be able to make investors completely whole. The best-case scenario would see a return of between 55% and 57% of the lost funds.
The 11 companies involved each handle between 5.5 million and 100 million users and process daily transactions ranging from $5 million to $4 billion.
These discussions began after Zettai applied to the Singapore High Court last week for a moratorium, following the July 18 attack that stole over $230 million (₹2000 crore) in crypto assets.
WazirX’s restructuring process is expected to take at least six months. Shetty explained that this timeframe accounts for the complex work involved in creating a recovery plan and incorporating feedback from the company’s 4.3 million creditors. WazirX Opens 2nd INR Withdrawal phase, Seeks ‘white knights’
The town hall also highlighted an ongoing dispute between Zettai and Binance over WazirX’s ownership, creating confusion about who is responsible for users’ crypto balances. Shetty noted that finding a resolution without a third party takeover is crucial due to this ownership dispute.
Since Binance’s announced acquisition of WazirX in 2019, ownership issues have surfaced, with Zettai managing WazirX’s assets amid ongoing legal battles over control and operational rights.
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