11.02.2025 13:20
WazirX plans to return 85% of the funds to the victims following the major hack incident in July. If this timeline is approved, the payment plan, which will start in April, will be determined by a majority vote of the creditors.
WazirX has announced a plan to refund 85% of the funds lost by its users affected by a $230 million hack attack. This step will begin after the exchange completes its asset balancing following the incident that occurred in July. Users will start receiving their first payments in the upcoming April.
WazirX's Call to Thousands of Creditors
The cryptocurrency exchange WazirX, which was subjected to a major cyber attack last July, announced that it plans to refund 85% of the losses to the affected investors. During the repayment process expected to start in April, users will be able to regain a significant portion of the asset values identified during the incident in July.
The exchange management announced that after the asset balancing work completed during the day, users will be able to view the equivalent of the assets they lost in the $230 million theft incident that occurred last July in US dollars and Indian rupees. Revenues generated from digital assets that were not affected by the attack have been evaluated to increase the refunds to users.
In order for the restructuring plan to be implemented, creditors must approve it by 75% by February 19. The proposed plan aims to establish a decentralized exchange, launch tradeable recovery tokens, and regularly buy back these tokens using platform revenues over the next three years.
If the plan does not receive the necessary approval, the restructuring attempt will fail, and the company will enter a liquidation process under Section 301 of the Singapore Companies Act. In this scenario, assets may be sold at low values, and creditors may receive less compensation.
In the attack that occurred last July, attackers exploited a vulnerability in a multi-signature wallet, seizing various cryptocurrencies, including $100 million worth of Shiba Inu (SHIB) and $52 million worth of Ether (ETH). According to a report dated June 2024, this loss, which constitutes more than 45% of the exchange's total reserves, forced the company into a restructuring process. Investigations indicate that the attack may have been carried out by the North Korean hacker group Lazarus.