WazirX to Distribute 85% of Stolen Funds to Hack Victims Pending Creditor Approval
WazirX has announced that it will offer victims of the $230 million hack from July 2024 an 85% return on the value of their stolen assets, as the Indian crypto exchange completes its asset rebalancing process. The first round of distributions is expected to take place in April.
As of Tuesday, users are able to view both U.S. dollar and Indian rupee values of the assets that were lost in the hack. In addition, any remaining tokens that were not stolen have been redistributed to all users, increasing the amount that can be refunded.
The current asset rebalancing plan is pending approval from creditors, who have until February 19 to vote on the proposal. For the plan to move forward, a majority vote of 75% is required.
The recovery plan includes launching a decentralized exchange (DEX), issuing recovery tokens that can be traded, and utilizing platform profits along with new revenue streams for periodic buybacks of these tokens over the next three years.
However, if the plan fails to gain approval, the company will proceed with liquidation under section 301 of the Singapore Companies Act. This could lead to assets being sold off at a significant loss, reducing compensation for creditors.
The hack, which occurred in July 2024, involved a breach in one of WazirX’s multisig wallets, draining over $100 million in shiba inu (SHIB) and $52 million in ether, along with other cryptocurrencies. The stolen funds represented more than 45% of the exchange’s total reserves as reported in June 2024. The North Korean hacking group Lazarus is believed to be behind the attack, as reported by CoinDesk.
