[ad_1]
 "WazirX")
Currently, the creditor base is skewed towards low value claims, WazirX said. Around 87 percent of platform users account for less than 8 percent of total claims by value | Photo: Shutterstock
Troubled crypto exchange WazirX has initiated the process of establishing a 10-member committee of creditors (CoC) by October 9 to provide consultations on its restructuring procedures.
Creditors, who are users affected by the $230 million crypto theft, will be sorted based on the scale of their claims, from smallest to largest. This list will be divided into 10 separate tranches, each representing 10 percent of the total claims.
Click here to join us on WhatsApp
Currently, the creditor base is skewed towards low value claims, WazirX said. Around 87 percent of the platform’s users represent less than 8 percent of total claims by value.
In a blog post, the crypto exchange said that the sum of all claims in these tranches amounts to $546.5 million. In total, the platform has around 4.3 million creditors.
One percent of creditors will be randomly selected to establish the pool of contingent creditors. These will be eligible to form a pool of potential CoC members, and subsequently, one creditor from each tranche will be randomly selected from this cohort to form the final committee.
“It is essential that sampling is completely random to eliminate any potential bias from the selection process – a random number generator will be used to ensure randomness of selection,” the company said.
WazirX plans to establish the pool of contingent creditors by October 3 and a pool of potential CoC members by October 8. He aims to finalize the committee by October 9.
The company will organize a CoC meeting within a week of the formation of the committee.
Last week, a Singapore court granted a four-month moratorium to the platform, giving the struggling company time to restructure its business without the pressure of legal proceedings.
A moratorium provides applicants with temporary relief from legal action.
WazirX, whose parent company Zettai is based in Singapore, filed a restructuring application with a Singapore court on August 23.
Last month, the company said customers affected by the recent cyberattack would not be able to recover all of their funds, even if the company sought to restructure.
During a virtual press conference earlier this month, the company’s advisers explained that the company could return 55 to 57 percent of the capital.
The cryptocurrency exchange is currently restructuring and looking for a white knight to provide capital and pursue partnerships and collaborations.
This includes implementing revenue-generating products and mechanisms to share profits with users, tracing and recovering stolen crypto assets, and/or allowing users who are in dire need of liquidity to withdraw more quickly crypto assets and exit the restructuring process.
The company had blamed its third-party wallet service provider, Liminal Custody, for the security breach.
Liminal has denied this allegation.
First publication: October 3, 2024 | 2:49 p.m. STI