A popular Indian crypto influencer has called on WazirX to either sell all its assets or hand over the platform to Binance in order to compensate victims of a recent hacking incident.
WazirX has been struggling financially since its services were suspended two months ago following a significant hack. To date, the exchange’s leadership has failed to finalise a plan to compensate affected customers.
On 14 Sep 2024, crypto influencer Aditya Singh, who was previously blocked by WazirX CEO Nischal Shetty on X, suggested that WazirX’s leadership should choose between liquidating all its assets or transferring control of the platform to Binance so that investors can recover their losses.
Singh argued that these are the only viable options for the company to address the issue.
Currently, WazirX is embroiled in a major legal dispute. In November 2019, Binance announced its acquisition of WazirX, but in 2022, former Binance CEO Changpeng Zhao claimed that the WazirX leadership had not fully transferred control of the exchange, including user details and KYC data. In contrast, WazirX CEO Nischal Shetty has maintained that Binance controls all aspects except for the KYC system and related details. This situation has created significant controversy and uncertainty among WazirX customers. Binance has publicly distanced itself from WazirX, although WazirX leadership claims that Binance collected all revenue from the WazirX business, which has contributed to its current financial difficulties.
WazirX & moratorium application
Currently, the WazirX leadership is seeking support from customers for their moratorium application. This support would provide them with enough time to restructure the platform by collecting funds and implementing a better plan.
However, some crypto influencers are opposing WazirX’s moratorium application. They argue that WazirX is seeking to use 100 crore INR from customer funds for legal expenses and is attempting to use these funds to protect itself from legal actions taken by customers.
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