• Kraken has appointed former Global General Counsel as legal chief
• The exchange recently gained an EU MiFID license for regulated trading
• With the new legal chief, Kraken aims to navigate US regulatory challenges

Kraken has appointed Ben Gray, former Global General Counsel at Paxos, as its new Chief Legal Officer.

The news comes a day after securing a Markets in Financial Instruments Directive (MiFID) license.

This strategic move comes as the cryptocurrency exchange aims to navigate the increasingly complex regulatory landscape while expanding its offerings in the European market.

A timely appointment

Kraken’s decision to bring Gray on board is seen as a significant step towards strengthening its legal and compliance framework.

Gray’s deep experience in the cryptocurrency sector, particularly from his tenure at Paxos where he managed legal, compliance, and enterprise risk, positions him perfectly to lead Kraken through its current regulatory challenges.

His background also includes working with Binance, showcasing his versatility in handling the multifaceted legal issues within the crypto industry.

The timing of Gray’s appointment could not be more critical. Kraken has been under scrutiny from regulators, notably from the US Securities and Exchange Commission (SEC), which accused the exchange of operating as an unregistered securities platform.

With this legal battle in the backdrop, Gray’s leadership in legal affairs is expected to be instrumental in navigating these challenges. His role will encompass overseeing Kraken’s legal strategy, ensuring compliance, and managing enterprise risks, all of which are vital for the company’s operations both in the US and abroad.

In the official announcement of the appointment of Gray, Kraken’s co-CEO Arjun Sethi expressed enthusiasm about Gray’s addition to the leadership team, emphasizing his role in scaling the business and fighting for regulatory clarity.

Sethi’s comments reflect a broader vision where Kraken not only seeks to expand its geographical footprint, but also aims to set industry standards for security, innovation, and compliance. This vision is particularly relevant in Europe, where Kraken sees substantial growth potential and where regulatory compliance can act as a competitive edge.

WazirX creditors are set to vote on a proposed restructuring plan to address losses from a $235 million hack in July 2024. The vote will determine whether the exchange resumes trading or undergoes liquidation under Singapore’s Companies Act. If approved, the restructuring plan could see trading recommence by April 2025, with initial payouts starting within 10 business days.

WazirX Creditors To Vote On Restructuring Plan

According to a recent statement from the Indian cryptocurrency exchange WazirX, creditors will vote on a restructuring plan to recover losses from the WazirX hack. The proposed plan outlines a 52% immediate debt settlement, with the remaining 48% to be paid from future profits and asset recoveries.

The vote follows approval from the Singapore High Court, allowing WazirX creditors to decide the exchange’s future. If the plan is accepted by at least 75% of creditors, trading may resume by April 2025, and payouts will begin within 10 business days.

In addition, the development comes days after the Singapore High Court granted WazirX approval in late January to convene a Scheme meeting. This meeting will allow creditors to vote on the proposed recovery plan, facilitating a structured repayment of unstolen funds. 

What Happens If Plan Fails?

If WazirX creditors reject the restructuring plan, the exchange will undergo liquidation under Singapore’s Companies Act. This could postpone repayments until 2030, significantly reducing the chances of full recovery for affected users.

Industry experts have warned that liquidation could lead to unpredictable asset distribution. The timeline for payouts would be extended, and the value of recoverable assets could decrease due to market volatility and operational challenges.

Planned Recovery Measures And Future Operations

To facilitate debt repayments and restore operations, WazirX plans to launch a decentralized exchange (DEX) and introduce recovery tokens. The proposal also includes periodic buybacks to stabilize the platform and improve financial sustainability.

Moreover, the restructuring plan will allocate Net Liquid Platform Assets to creditors as part of the recovery process. The company has been working closely with the Committee of Creditors (CoC) to ensure faster distribution and prevent prolonged delays in fund recovery.

The vote will determine whether the Indian exchange can resume trading or enter a liquidation process. The restructuring plan is an alternative to liquidation. It offers creditors a more immediate path to fund recovery. With over 4.4 million creditors involved, the voting process is a crucial moment for the Indian exchange

Meanwhile, WazirX continues its efforts to recover stolen funds, freezing $3 million in assets as part of its recovery plan. Founder Nischal Shetty emphasized that this is just the beginning, reaffirming the platform’s commitment to retrieving lost crypto. The exchange is working with law enforcement to track stolen assets and ensure a smooth recovery process.

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Ronny Mugendi

Ronny Mugendi is a seasoned crypto journalist with four years of professional experience, having contributed significantly to various media outlets on cryptocurrency trends and technologies. With over 4000 published articles across various media outlets, he aims to inform, educate and introduce more people to the Blockchain and DeFi world. Outside of his journalism career, Ronny enjoys the thrill of bike riding, exploring new trails and landscapes.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.