WazirX selects 10 creditors for the CoC but there is a catch

WazirX has selected 10 creditors to form a Committee of Creditors (CoC), but the process has raised some transparency concerns among investors on X. The identities of the members remain anonymous, as stated by the company earlier.

Despite the company commencing its restructuring process, India is struggling to compete with its Asian peers in crypto growth.

WazirX has formed an ‘anonymous’ 10-member CoC

Indian crypto exchange WazirX has included 10 creditors in its Committee of Creditors (COC). The identity of the 10 CoC members has not been revealed, leading to some investors questioning the transparency of the process. According to users on X, WazirX shared a Google Form with potential CoC members as part of the process. 

As previously reported by Cryptopolitan, the selection process for the COC began on October 3. The exchange said in its official communication that the COC members were randomly picked. The company also reiterated that the selection process is impartial and “fairly” represents creditor interests.

#WazirX creditors committee, consisting of 10 members, has been successfully formed !

Does anyone from 🇮🇳Indian crypto community was chosen as creditor ?

Or they are just making up their own committee 🙄

CONFIDENTIAL 🤡 pic.twitter.com/ZKIm2tO2Mn

— Ajay Kashyap (@EverythingAjay) October 10, 2024

WazirX said, “COC members represent all the general body of Creditors in their discussions with the Company and its advisors and will play a crucial consultative role in the restructuring of the crypto balances of the WazirX platform.”

However, the CoC has a consultative role in the exchange’s restructuring terms. The first COC meeting is now scheduled for October 15 with the key agenda being setting up a feedback process. ⁠

WazirX tragedy weighs down on Asian growth

The exchange recently held an online town hall where Zettai said it would not benefit from any gains or losses on the tokens being returned to creditors. WazirX also stated that creditors have the option to choose which tokens they want to be exposed to.

Currently, the WazirX app and website display a notification of withdrawals paused for maintenance when investors try to take out their funds. On the incident, Roshan Dharia, CEO of crypto exchange Paxful, told Cryptopolitan, “Two things are true about cybersecurity incidents in general: they’re tragic for users and businesses alike—and they’re preventable.”

Dharia says that we need to teach people that with the benefits of using crypto and peer-to-peer (P2P) transactions comes the responsibility of protection from common scams.

The WazirX hack that led to the users being unable to withdraw funds came amid crypto growth in Asia. Hong Kong SFC has said that it will hand licenses to more crypto exchanges in 2024. The securities regulator of Thailand has proposed rules to allow crypto investment by mutual and private funds.

Keval Bhanushali, co-founder and CEO of 1Finance, questioned why India isn’t allowing the setup of crypto ETFs at least for foreign investors in its GIFT City. Gujarat International Finance Tec-City, also called GIFT City, is a financial hub for international transactions in the Indian state of Gujarat. Bhanushali suggests that crypto ETFs could provide indirect participation for Indians.