- Wazirx Refund is a speculation as The NCDRC declined to accept the case of WazirX investors, claiming that cryptocurrencies are not recognized under Indian law.
- WazirX has suggested a restructuring plan sanctioned by the Singapore Court, which will refund 85% of the lost amount in the form of recovery tokens.
- The Supreme Court ruling is pending, and the victims can claim their stolen crypto by April.
WazirX refund, is the big question mark as the National Consumer Disputes Redressal Commission (NCDRC) has refused to hear a case that was filed by a group of investors in WazirX who lost funds in the $234 million crypto hack.
The commission said that since crypto transactions are not fully regulated in India, it cannot hear the case. It also included that cryptocurrencies are not legal tender and are not officially recognized as investment assets in India. Due to this, the financial fraud claim against WazirX refund lacks a firm legal basis.
The lawyer of the investors, Aman Rehaan Khan, will appeal the case to the Supreme Court. He will look for recovery of the money lost and criminal prosecution of the perpetrators. Although the NCDRC ruling was disappointing, Khan stated there was one silver lining.
The commission held that cryptocurrencies are “goods” as per the Consumer Protection Act and are property as per the Income Tax Act. The complaint was lodged by 40 investors who stated they had lost around INR 12 crore (around $1.4 million).
WazirX Refund Plans
Even though crypto is not a legal tender in India, the government charges a 30% tax on crypto gains. All exchanges of crypto must register with the Financial Intelligence Unit (FIU) of the finance ministry.
The government had introduced the Cryptocurrency and Regulation of Official Digital Currency Bill in 2021, but it was never adopted, and the crypto market was not regulated. Now, the whole nation is holding its breath for the Supreme Court ruling.
In 2020, the court had revoked the RBI’s 2018 ban on trading in crypto and scolded the government for not providing transparent guidelines for crypto trading and fraud investigations.
Meanwhile, Nischal Shetty-led WazirX Refund plan is working on a massive restructuring plan for users to get back a portion of the lost money. The company pledged to return 85% of the lost funds in an approved restructuring plan by the Singapore Court.
It already held eight online town halls with affected users but has yet to provide final details on the next steps. The restructuring plan involves releasing $284 million in liquid assets and issuing recovery tokens to affected investors. These tokens will be distributed among the creditors when WazirX completes rebalancing its liabilities.
Will Wazirx Refund?
The platform will also resume as a decentralized exchange with new features. The returns from the first three years will be used to buy back the recovery tokens. With the rebalancing process now complete, affected users are expected to get back their stolen crypto by April.
Also Read: WazirX Vote Ends: Will Users Finally Get Their Funds or Face Another Setback?
