WazirX

<p>In the ongoing drama of the major WazirX hack, the Twitter account “Justice for WazirX Users” received a detailed warning message from Vauld investors, cautioning the WazirX community about the involvement of Kroll, a financial and risk advisory.&nbsp;</p> 
<p>In the <a href="https://x.com/IndiasCrypto/status/1836348519952589254" target="_blank" rel="noreferrer noopener nofollow">post</a> of ‘Justice for WazirX users’, Vauld creditors claim that their experience with Kroll, a restructuring firm hired by Vauld CEO Darshan Bathija, has been disastrous, and they are warning WazirX creditors to be cautious about a similar path.</p> 
<p>On September 18, 2024, it has been <a href="https://www.cryptotimes.io/2024/09/18/2-months-to-wazirx-hack-why-crypto-is-a-hush-hush-affair-in-india/" target="_blank" rel="noreferrer noopener">two months since the WazirX cryptocurrency exchange hack</a>, which resulted in the loss of approximately Rs 2000 crore (about $240 million) worth of user funds. The hack led to WazirX halting its operations, freezing remaining user funds, and proposing a restructuring moratorium in Singapore. In the proposal Kroll, financial advisor to wazirX on the case, had estimated that Indian users face potential losses of 43-45% of their funds.</p> 
<p>In response to the hack, users have been actively protesting against WazirX management, accusing them of negligence and refusing to take responsibility for the loss.</p> 
<h2 class="wp-block-heading" id="key-points-raised-by-vauld-creditors">Key Points Raised by Vauld Creditors:</h2> 
<h3 class="wp-block-heading" id="similarity-between-vauld-and-wazirx">Similarity Between Vauld and WazirX</h3> 
<p>Vauld, went insolvent over two years ago post hack. Vauld CEO Darshan Bathija promoted a restructuring plan, much like WazirX’s CEO Nischal Shetty is doing now, framing it as the best way for customers to recover their frozen assets. Vauld creditors believe this tactic is misleading.</p> 
<h3 class="wp-block-heading" id="involvement-of-kroll-and-mismanagement-allegations">Involvement of Kroll and Mismanagement Allegations:</h3> 
<p>Vauld hired Kroll, specifically Jason Kardachi and George Gwee, to manage the restructuring. Vauld creditors accuse Kroll of mismanaging funds, and wasting millions of dollars from creditors without providing transparency or results. They argue that Kroll’s restructuring has so far failed to recover any significant funds, with creditor money being spent on vague activities that are never fully explained.</p> 
<h3 class="wp-block-heading" id="concerns-over-wazirx-restructuring">Concerns Over WazirX Restructuring</h3> 
<p>Creditors are warning that WazirX’s use of Kroll for restructuring could replicate the issues experienced with Vauld. They allege that Kroll’s involvement might result in a similar lack of transparency and accountability, leaving creditors with insufficient answers and potential financial losses. There are concerns that Kroll’s efforts could obscure the situation rather than facilitate the recovery of funds.</p> 
<h3 class="wp-block-heading" id="unfulfilled-promises-and-lack-of-accountability">Unfulfilled Promises and Lack of Accountability</h3> 
<p>According to Vauld creditors, Kroll promised an audit before the restructuring scheme was passed, but they later abandoned that promise. They also noted that Kroll has failed to investigate or recover funds that were lost due to a hack worth $6-8 million just before Vauld’s insolvency. Additionally, Bathija allegedly loaned more than $200 million in creditor funds to an unknown entity just before insolvency, raising questions about mismanagement.</p> 
<h3 class="wp-block-heading" id="censorship-of-creditors">Censorship of Creditors:</h3> 
<p>Vauld creditors claim they have been censored and banned by Kroll after asking tough questions about the handling of the restructuring and the spending of creditor funds. They describe a lack of respect and secrecy on the part of Kroll and Vauld executives.</p> 
<h2 class="wp-block-heading" id="warning-to-wazirx-creditors">Warning to WazirX Creditors:</h2> 
<p>Vauld creditors are warning WazirX creditors to reconsider accepting Kroll’s restructuring plan. They claim that it will lead to further financial losses and continued mismanagement, as seen with Vauld. They urge WazirX creditors to be cautious, highlighting the need for greater transparency and accountability from both Shetty and Kroll.</p> 
<p>The Vauld creditors have set up a <a href="https://vauldaction.org/index.html" target="_blank" rel="noreferrer noopener nofollow">website</a> where they document issues with the restructuring process and share information. They also hold regular Zoom calls to discuss their issue weekly and have invited WazirX users for the same.</p> 
<p>This situation highlights the risks in cryptocurrency insolvencies, where users face financial losses and unclear processes. WazirX creditors must now decide whether to proceed with the restructuring, given the warnings from Vauld creditors about potential issues.</p> 
<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow"> 
 <p>Also Read: <a href="https://www.cryptotimes.io/2024/09/18/wazirx-hacker-has-moved-over-rs-1400-crore-in-2-months/" target="_blank" rel="noreferrer noopener">WazirX Hacker has moved over Rs 1400 crore in 2 months</a></p> 
</blockquote>

Vauld Investor Warns Nischal and Kroll Are misleading WazirX Users

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The Crypto Times

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