WazirX is a prominent name in the cryptocurrency industry. However, it is currently facing some legal challenges as the court dismissed its restructuring plans. The plans were released to the public on June 4th.
The decision was unexpected, as the plan had been approved by 93.1% of voters. Therefore, this was a definite gut punch for both the creditors and the company. In a post on social media, the company expressed its point of view.
The post reads, “Our primary focus remains to begin distributions as soon as possible. Towards this goal, we are currently evaluating all available legal options in consultation with our legal and advisory teams, and will be appealing against the decision of the Singapore High Court. Today’s decision does not impact the NLPA assets, which remain safe.”
The Other Side Of The Argument
However, Dinkar Karla, a user and Supreme Court representative, supported this decision, saying, “The Singapore High Court rightly saw through WazirX’s antics and refused to approve the restructuring scheme, citing a fundamental lack of transparency.”
Kalra further added, “The company failed to disclose the creation of its Panama-based subsidiary, Zensui Corp. to Indian users who were asked to vote on the proposal. This omission is not a minor oversight, it goes to the heart of user trust and legal accountability. Indian users have maintained from the very outset that WazirX’s management has been actively trying to dodge its legal obligations in India. The abrupt relocation to Panama, a jurisdiction known for lenient regulatory oversight, is further proof.”
It is safe to say that WazirX is in a state of flux where its movements are monitored and socially scrutinized. Therefore, new moves by the organization can ignite a new row of troubles.
