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India’s WazirX Aims to Compensate Users Post $235M Hack, Launches Recovery Plan

Published by
Mustafa Mulla

Indian cryptocurrency exchange WazirX is working on a recovery plan after a cyberattack in July 2024 resulted in a loss of $235 million. The attack, which was allegedly carried out by North Korea’s Lazarus Group, severely impacted the platform, but now the exchange is focused on rebuilding trust, compensating affected users, and ensuring that such an incident never happens again.

Keep reading to find out how WazirX is bouncing back stronger than ever.

Recovery Plan with Singapore’s Support

To address the damages and move forward, WazirX has implemented a restructuring plan under Singapore’s legal system. In August 2024, its parent company, Zettai, filed a moratorium in the Singapore High Court to propose a Scheme of Arrangement. 

However, this allows the exchange to restructure its debts and liabilities while avoiding liquidation, ensuring that users will be compensated in an organized and transparent manner.

WazirX reassured users by revealing it holds liquid assets worth $566.4 million USDT, which is more than enough to cover the $546.5 million USDT in claims filed by affected users. As part of the recovery plan, WazirX will issue recovery tokens to settle these claims.

Restoring User Trust

WazirX founder nischal shetty pointed out the importance of restoring user confidence, calling the restructuring a crucial step.

“Our goal is to give users more value than what was stolen.”. 

The distribution of recovery tokens is expected to begin after the court and creditors approve the plan. WazirX estimates that users will receive around 75% to 80% of their account balances at the time of the cyberattack. The initial distributions will be completed within 10 business days after the plan is finalized.

Competitor CoinSwitch Steps In

Recently Coinpedia news reported that WazirX’s competitor, CoinSwitch, has launched a fund called “CoinSwitch Cares” to support victims of the attack. The fund is around $69.9 million (600 crore INR) and aims to provide relief to affected users. CoinSwitch is also pursuing legal action against WazirX to recover $1.44 million stuck on the platform.

Despite the challenges, WazirX is determined to recover and regain the trust of its users. The broader crypto community is rallying to support those affected.

As WazirX works to rebuild and recover, the path ahead promises a stronger, more resilient exchange determined to regain its place in the crypto world. We love to see it!

Mustafa Mulla

Mustafa has been writing about Blockchain and crypto since many years. He has previous trading experience and has been working in the Fintech industry since 2017.

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