WazirX Affidavit: Clarifications and Unanswered Questions
Initially, in an effort to address the legal and financial quandaries following the hack, the co-founder put forth an affidavit detailing the engagement with creditors and a possible restructuring process. Yet, a subsequent affidavit has only served to highlight the opaque proceedings at Zettai. Amid revising the total amount of funds at the time of the hack, notable is the inclusion of INR funds alongside crypto holdings without clear demarcation, raising pivotal inquiries regarding the separation and management of these funds across different legal entities.
Furthermore, discrepancies in reported figures and the declared percentage of stolen funds raise questions about the accuracy and reliability of the exchange's public statements post-hack. The ambiguity surrounding the reserve-to-liabilities ratio, as mentioned in the Proof of Reserves Report, contrasts starkly with the silence from the team post-event, leading one to question the veracity of the exchange's financial health declarations.
Lack of Transparency In ZETTAI Financial Statement
An in-depth examination of Zettai Pte. Ltd.'s first-time-revealed financial statements manifests numerous red flags. The financial performances for FY 2022 and 2023 expose not only a dramatic downturn in revenue but also questionable allocations in sales, marketing, and administrative expenditures. Moreover, a substantial rise in other receivables raises doubts about their recoverability, while a marked drop in trade payables signals potential cash flow management issues.
The essence of the financial disclosure falls short of offering a transparent and comprehensible portrayal of Zettai’s financial position. Critical details remain obscured, leaving stakeholders grappling for insight into the real fiscal health and operational viability of the entity behind WazirX.
11 White Knights or Just a Delay Tactic?
In a narrative twist, WazirX's mention of engaging with 11 major crypto exchanges for a potential capital infusion could signal a ray of hope for the beleaguered platform. However, the existence of a legal deadlock with binance over managerial rights and asset custody presents a substantial barrier to any forthcoming rescue efforts. Without resolution, the promise of these "white knights" remains but a distant possibility.
Conclusion
The unfolding scenario following the affidavit submissions paints a grim picture of the operational and financial discrepancies within Zettai vis-à-vis WazirX. Clerical inaccuracies in court documents and lingering questions mark a saga that is far from finding resolution. As the community seeks clarity and the restoration of their funds, the path forward remains mired in uncertainty. Whether this tale ends in redemption or further obfuscation, the impact on investors and the broader crypto ecosystem in India is profound, signaling a pivotal moment in the nation’s crypto narrative.
As developments continue to emerge, all eyes remain fixed on the evolving storyline of India's most significant crypto upheaval, awaiting answers that could either mend or further fray the trust in the nation's cryptocurrency landscape.
