WazirX to Return Up to 80% of Users’ Assets
The Singapore High Court has approved a restructuring plan for Indian crypto exchange WazirX, designed to compensate users affected by a significant hack.
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The plan outlines the return of 75–80% of assets and rules out liquidation of the company. The court also confirmed that the platform’s leadership acted appropriately during the cyberattack. In July 2024, North Korea’s Lazarus Group hacked WazirX, stealing $235 million.
In the coming months, WazirX will conduct a new audit with an independent firm and present a recovery plan for user voting. This process is expected to take about three months. If the majority supports the proposal, the exchange will distribute the remaining liquid assets within ten days.
Unlike the chaotic bankruptcy and liquidation process seen with FTX, which caused significant losses for creditors and users, WazirX has taken a structured and thoughtful approach. This shows that even in challenging circumstances, it’s possible to prioritize clients and achieve a positive outcome,
says The Coinomist analyst Anton Kryshtal.
The judge emphasized that restructuring offers the best chance for a swift recovery, noting that liquidation could result in even greater losses for users. Meanwhile, law enforcement agencies across multiple countries continue their efforts to recover funds stolen by the Lazarus Group.
As part of the recovery plan, WazirX also plans to issue a recovery token to help offset long-term losses. Token holders will receive a share of the profits from a new decentralized platform the exchange is planning to launch in the near future.
Related: WazirX Hack: Is Liminal Responsible for the Lost Funds?
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