Liabilities galore, task cut out for WazirX in quest for white knight

Sourcing white knights, or those entities who may prevent a hostile takeover, may turn out to be an uphill task for the embattled crypto exchange WazirX.

- AJINKYA KAWALE

The beleaguered platform is tied up with a series of challenges including massive liabilities, its dispute with global crypto exchange Binance, and investors losing faith as the company looks to restructure.

The company may be engaged in talks with a bunch of crypto platforms for a potential deal, sources close to the company said.

"It is prudent for any white knight who is going to take over Zettai (WazirX's parent company) altogether to exclude itself from any existing liabilities or get indemnities in its favour against any claims by the users. The only incentives for the buyer to take over Zettai would be the assets and the user data or customers," said Navodaya Singh Rajpurohit, Legal Partner, Coinque Consulting and founder, Pravadati Legal.

However, with the firm under moratorium, most creditors would consider moving away from the platform to other exchanges as the company undergoes restructuring.