9,000 WazirX users wrongly receive moratorium support confirmation

WazirX, which is facing liabilities amounting to $546.5 million, had floated a user poll to measure potential interest in its moratorium application

Hack-hit crypto exchange WazirX sent out incorrect confirmation emails to around 9,000 users who had not extended their support for a moratorium of the company, adding to confusion among customers of the platform. 

The email of confirmation was only intended to be sent to those who had approved their support for the company’s moratorium through an informal survey.  A court in the South-East Asian country has granted it a four-month moratorium. This offers an applicant temporary relief from legal proceedings.

“It had come to Zettai’s attention that an email intended only for users who had previously indicated their support for the moratorium was mistakenly sent to approximately 9,000 additional platform users who had not indicated support,” the company disclosed in a transcript. 

Zettai, which is the parent company of WazirX, is based out of Singapore. 

The company acknowledged that the incorrect emails caused confusion among users, recognising that it may have “impacted users” trust in the polling process.

WazirX, which is facing liabilities amounting to $546.5 million, had floated a user poll to measure potential interest if its users supported its moratorium application. 

Initially, the poll indicated only one option which enabled users to positively confirm their support for the legal procedure. However, following the court’s direction, it updated the survey with multiple options, including one for users who opposed the application, those who supported it, and others who did not hold any position on the application. 

The company recorded its users’ responses based on the updated survey. It considered older responses of users who did not participate in the new survey.  

“The platform’s users were informed of this updated survey in the email dated September 12 2024,” the company added. 

WazirX, which was among the major crypto exchanges in India, suffered a security breach in July, leading to the platform losing more than half of its digital assets valued at $230 million.

The company added it was working on improving recoveries to users from profit sharing of a reopened crypto exchange and new revenue generating initiatives, recovery of stolen tokens, and collaborations with white knights.

In September, the company said it was looking for a white knight to provide capital and pursue partnership and collaboration.

This would entail implementing revenue-generating products and mechanisms to share profit with users, tracing and recovering stolen crypto assets, and/or allowing users who need liquidity urgently to withdraw crypto assets more quickly and exit restructuring.