WazirX: Relief for Hack Victims
Indian crypto exchange WazirX has taken a major step towards asset recovery for users affected by its recent hack. According to the latest WazirX news, the platform has successfully completed an asset rebalancing process, enabling victims to recover approximately 85% of their lost portfolio value as of July 18, 2024.
Asset Rebalancing to Aid Fund Recovery
The asset rebalancing process concluded on February 11, 2025, with the first round of fund distribution scheduled for April 2025.
- WazirX shared an update on social media platform X (formerly Twitter):
- “Rebalancing Complete!
- The rebalancing of platform assets is now done!
- Initial fund distribution will return ~85.26% of USD value to creditors, based on rebalancing prices.
- Creditors can check their allocated share on the WazirX app & website.
Zettai remains committed to maximizing recoveries through:
- Platform reactivation
- Recovery Tokens
- Asset recovery (including stolen funds)
- New business initiatives (DEX)
All this depends on the Scheme’s approval if a majority votes Yes!”
Recovery Process and User Compensation
As per recent India crypto news, WazirX users lost significant funds in INR and USD following a $230 million hack. Affected users can now view their updated balances on the WazirX platform.
The rebalancing strategy includes adding value from non-stolen tokens to maximize recoverable assets. The exchange has also received backing from fellow Indian crypto platforms like CoinDCX to support its recovery efforts.
Rebuilding Trust and Future Plans
WazirX is actively working to rebuild trust and ensure asset recovery. However, the rebalancing plan requires at least 75% approval from lenders by February 19, 2025, to move forward.
Key elements of the restructuring plan include:
- Launch of a decentralized exchange (DEX) with tradeable recovery tokens.
- Periodic buybacks of these tokens over three years using platform earnings and additional revenue streams.
- A structured compensation approach to ensure affected users receive steady repayments.
While WazirX aims to restore user confidence, concerns remain about the platform’s safety and legality in India. If lenders reject the proposal, WazirX may face liquidation under Section 301 of the Singapore Companies Act.
Background: The WazirX Hack
In July 2024, WazirX suffered a security breach in its multisignature wallet, resulting in the theft of over $100 million in SHIB and $52 million in Ethereum, among other assets. The stolen funds accounted for over 45% of the platform’s total reserves, prompting an urgent restructuring plan to manage liabilities.
Conclusion
WazirX’s recovery efforts mark a critical step in the Indian crypto space. The success of its asset rebalancing and lender-approved restructuring plan will determine the future of the exchange and its users. Investors and traders now await the final decision on the proposed fund recovery strategy.
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