WazirX Takes Down Video Promising Crypto Users Of Full Profits

Forensic Probe Reveals WazirX’s Systems & Laptops Not Compromised In $230 Mn Crypto Heist

SUMMARY

WazirX sources said that the initial link pertained to the live town hall broadcast, adding that the company uploaded the entire YouTube video with a new URL

Kroll director George Gwee was seen in the video saying that all profits from crypto price appreciation during the restructuring period would be shared with users

In July, one of WazirX’s multisig wallets was hit by a major breach, which resulted in the loss of over $230 Mn in cryptocurrencies

Update | October 5, 09:58 PM: This story has been updated to include comments from sources close to the company.

Sources at WazirX have rejected the report which said that the troubled crypto exchange took down a YouTube video in which its management claimed to share 100% profits from any crypto price appreciation during its restructuring process with the users in the future.

The sources close to the company told Inc42 that the crypto exchange did not take down any such video. They said that the initial link pertained to the live town hall broadcast. Later, the company uploaded the entire YouTube video with a new URL, they claimed.

Earlier, The Crypto Times claimed that WazirX took down a YouTube video where the company management claimed that it would share 100% profits from any crypto price appreciation in future with users.

The comments came during an hour-long town hall session on October 4, which saw WazirX cofounder Nischal Shetty and George Gwee, director of Kroll, the legal entity managing the crypto exchange’s restructuring after $234 Mn heist, answering questions from affected users.

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During the Q&A session, a user raised a question over what will be the sharing percentage of profits if crypto prices appreciate during the restructuring process. To this, Gwee said that 100% of profits from crypto price appreciation during WazirX’s restructuring would be shared with users.

However, as per The Crypto Times, the video was made private by WazirX right after users “praised” Shetty for the move.

The development came hours after WazirX announced plans to form a Committee of Creditors (CoC) by October 9, as the exchange works to restructure its liabilities following a $234 Mn hack that left its Indian users with significant losses.

The 10-member panel, consisting of users affected by the hack, will provide advice and feedback on WazirX’s restructuring plan, according to a blog post by the company.

In July, one of WazirX’s multisig wallets witnessed a major breach, resulting in the loss of over $230 Mn in digital assets, accounting for more than 45% of the exchange’s

In the aftermath, cofounder Nischal Shetty tried to deflect responsibility for the breach on wallet provider Liminal, a claim that Liminal refuted last month. Afterwards, the company also announced a bounty hunter programme to gather clues on the whereabouts of the missing cryptos.

Eventually, the crypto exchange filed an application before the SIngapore High Court, in August, seeking moratorium as the move would give it the necessary “breathing space” to facilitate restructuring of liabilities. Last month, the HC granted the cryptocurrency exchange a four-month moratorium.