Users left frustrated as crypto exchange backtracks on claims made during YouTube town hall.
WazirX, one of India’s largest cryptocurrency exchanges, has removed a YouTube video in which management promised users 100% profit sharing from future cryptocurrency price appreciation. The video was part of a one-hour town hall session on October 4, where co-founder Nischal Shetty and George Gwee, director of Kroll, addressed concerns from users affected by a $234 million hack earlier this year.
Frustration Mounts Among Users
During the session, Gwee had assured a user that all profits from price increases during the exchange’s restructuring would be shared with users. The video was met with praise for Shetty, but soon after, WazirX made the video private, sparking frustration among users. Many were already sceptical after the company had promised fairness in front of the Singapore court, which granted a four-month moratorium on legal action against the exchange.
Restructuring Process Clarified
In a second YouTube town hall, WazirX clarified that past profits would not be shared under the new restructuring plan. They explained the company’s assets included funds remaining after the hack, recovered tokens, and tokens generated from future collaborations. Zettai Pte Ltd, WazirX’s parent company, valued its total assets at approximately $301.79 million.
Committee of Creditors Formation
The incident comes just as WazirX announced plans to form a 10-member Committee of Creditors (CoC) by October 9. This panel, composed of users affected by the hack, will provide input on the company’s restructuring plan. The exchange’s $234 million hack in July, which wiped out over 45% of its reserves, has left millions of Indian users with substantial losses.
In response to the breach, WazirX has shifted blame between external parties, including custody wallet provider Liminal and Binance, both of which have rejected responsibility.
