WazirX Awaits Creditors' Nod for Redistribution Scheme: Founder

Needs approval of at least 50% of creditors by volume, and 75% by value

- AJINKYA KAWALE

Beleaguered crypto exchange WazirX founder Nischal Shetty is banking on creditor approval by a majority of its users for a scheme to surmount its difficulties.

The exchange is struggling with financial distress, an ownership dispute with Binance, past tensions with another crypto platform CoinSwitch, and increasing liabilities.

WazirX faced an alleged security breach, which affected the platform, leading to a loss of over $230 million in July last year.

The company has claims worth $546.5 million and $302 million in assets.

A scheme for asset redistribution is tentatively scheduled between March 19 and 28. This approval requires at least 50 per cent of creditors by volume and 75 per cent by value.