WazirX, once a leading cryptocurrency exchange in India, is now facing significant challenges after a cold wallet hack 1.5 months ago. To shield itself from liabilities, the exchange is pursuing legal immunity in Singapore through a scheme of arrangement, causing concern among its users. On September 13, 2024, a Crypto X account representing WazirX customers reported that the platform plans to repay users only 40-55% of their funds, with payments starting six months after legal immunity is secured. These repayments would be distributed in small tranches of 5-10% over several months or even years. WazirX claims that offering the full 55% upfront would financially cripple the platform, and it intends to use the remaining user funds to attract new users.
Critics argue that WazirXâs strategy benefits its leadership at the expense of customers, leaving them waiting for full refunds while the exchange seeks new users. Many believe that once users receive partial repayments, they will likely leave the platform, making WazirX dependent on a new influx of traders.
Some in the crypto community suggest that Binance should fully acquire WazirX without conditions, allowing users to recover 100% of their funds. They argue that WazirX should accept personal losses and negotiate a full acquisition with Binance, prioritizing users' interests and restoring trust. While this may not provide immediate financial gain, it could help WazirX earn respect and open future opportunities.