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

Indian cryptocurrency exchange WazirX WazirX - [email protected] Centralised ExchangeCrypto trading and Information 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 nischal shetty Nischal Shetty is the Founder of India's largest and extremely trusted crypto exchange platform called WazirX. He is an entrepreneur who is passionate about technology, blockchain, crypto, and innovation. Founded WazirX in 2018 with a mission to involve every Indian in the blooming Blockchain revolution, built along with a team of passionate blockchain believers and hardcore traders. At present, he is also serving as Committer at Shardeum since February 2022 which is a sharded, infinitely scalable, community-driven completely decentralized layer 1 blockchain firm.   In 2010, Nischal became the Founder of Crowdfire which is a Software development company based in Mumbai. Via Crowdfire he helps individuals easily manage their social media profiles around multiple platforms by bringing them into a single and simple interface. Nischal Shetty began his career life holding and leading the position of Software Executive at 31 Infotech developing virtual solutions in Java and related technologies. Whereas In January 2009, he Founded Twi5 which is one stop place for discovering all the best Twitter applications and attracts thousands of visitors every day. Apart from this, he adores sharing his opinions on technology, development, and innovations. Nischal Shetty has been honored with several awards and recognitions some of which include Forbes 30 under 30, and the Inspiring CEO’s award by ET.  EntrepreneurDeveloper/ProgrammerChief Executive OfficerAuthor 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.

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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.

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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!