WazirX

<p>Nischal Shetty, the co-founder of crypto exchange WazirX, has publicly addressed allegations of similarity between him and infamous stockbroker fraudster Harshad Mehta, and claimed that he is actually a victim of “false narrative”. Shetty took to X (formerly Twitter) to seek support of users for his proposed restructuring scheme, almost five months after WazirX was hit by a cyber hack that resulted in loss of Rs 2000 crore worth of user funds.</p>
<p>Addressing allegations put forth by an X user who referred to him as the “Harshad Mehta of Web3”, Nischal said he is trying his best to resolve the issue at hand, even as millions of <a href="https://www.cryptotimes.io/2024/12/05/btc-clocks-100k-wazirx-users-ask-where-is-our-money/" target="_blank" rel="noopener noreferrer nofollow">WazirX</a> users anxiously await retrieval of their locked funds. <a href="https://en.wikipedia.org/wiki/Harshad_Mehta" target="_blank" rel="noopener noreferrer nofollow">Mehta</a> was a stockbroker at the Bombay Stock Exchange in the early 90’s who was convicted for fraudulent activities and market manipulation.</p>
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   <p lang="en" dir="ltr">Scam and cyberattack are two different things. Don’t fall for false narratives that are convenient to believe but not the truth.<br><br>This cyberattack has caused everyone pain and our objective is to pick up the pieces and help resolve it in the best way we can. But this can only be…</p>— Nischal (Shardeum) <img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f53c.png" alt="🔼" class="wp-smiley" style="height: 1em; max-height: 1em;"> (@NischalShetty) <a href="https://twitter.com/NischalShetty/status/1865208769321263182?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">December 7, 2024</a>
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<p>Nischal took to Twitter, warning against believing “convenient but misleading narratives” against the WazirX exchange. In light of ongoing <a href="https://www.cryptotimes.io/2024/12/05/bitcoin-the-more-you-criticise-the-more-i-rise/" target="_blank" rel="noopener noreferrer nofollow">bull run</a>, WazirX management is under immense pressure to return the users’ funds that have been locked and suspended for the past 4.5 months. After the July 18 hack, WazirX users lost 45% of funds after which the management had proposed a restructuring scheme in front of Singapore Court where users are expected to accept a socialistic loss sharing policy on their crypto funds.</p>
<p>The restructuring plan aims to reimburse user funds once the exchange resumes operations. According to Shetty, withdrawals will only occur post-restructuring to avoid delays. He explained that allowing deposit withdrawals before the restructuring efforts are completed, would force the team to halt their progress.</p>
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   <p lang="en" dir="ltr">1. After hack deposit amount withdrawal will mean team has to stop the work towards restructuring efforts. In order to not delay, we’ll do this after restructuring work is completed. Mostly I think these withdrawals will be along with the platform restart if the scheme passes.…</p>— Nischal (Shardeum) <img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f53c.png" alt="🔼" class="wp-smiley" style="height: 1em; max-height: 1em;"> (@NischalShetty) <a href="https://twitter.com/NischalShetty/status/1865210860618027102?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">December 7, 2024</a>
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<p>Shetty also pointed out that the remaining frozen funds are under legal scrutiny. “The remaining amount is still frozen in the bank. We’re pursuing it through the legal process,” he added. The restructuring process progressed on Friday as WazirX submitted an affidavit to the Singapore Court. Nischal Shetty stated that an application was filed to seek approval for convening a meeting of creditors, describing it as a crucial step in advancing the proposed scheme.</p>
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   <p lang="en" dir="ltr">Yesterday, we filed an application in the Singapore court to convene a meeting of creditors. It’s a critical step in moving forward with the scheme. This brings us closer to putting the proposal to a vote.<br><br>Next week, we will share the scheme documents with you, providing details…</p>— Nischal (Shardeum) <img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f53c.png" alt="🔼" class="wp-smiley" style="height: 1em; max-height: 1em;"> (@NischalShetty) <a href="https://twitter.com/NischalShetty/status/1865199098372198657?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">December 7, 2024</a>
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<p>The coming two weeks would be crucial for not just WazirX management but 4.4 million users of the exchange as the Singapore court is set to announce voting among users to pass the restructuring scheme.</p>
<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">
 <p>Also Read: <a href="https://www.cryptotimes.io/2024/12/04/india-cracks-down-on-%e2%82%b9824-cr-gst-evasion-by-binance-wazirx/" target="_blank" rel="noopener noreferrer nofollow">India Cracks Down on ₹824 Cr GST Evasion by Binance, WazirX</a></p>
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I am not Harshad Mehta, says Nischal; Wants WazirX User Support

The Crypto Times

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