WazirX to Distribute 85.25% Recovery of Lost Funds by April 2025
WazirX announced that affected users will recover 85.25% of lost funds following a $230 million security breach in July 2024. Initial distributions are set for April 2025, based on portfolio values recorded at the time of the breach.
- Users can track recovery amounts in USD and INR on WazirX’s platform.
- Additional funds from unstolen tokens have been credited to boost recovery.
- A February 19 deadline has been set for creditors to approve the asset rebalancing scheme, requiring at least 75% approval to proceed.
- If the vote fails, liquidation under the Singapore Companies Act may occur, significantly reducing compensation.
Impact of July 2024 Hack
The hack caused reserves to drop by over 45%. The Lazarus Group is suspected to be behind this cyber attack.
- WazirX added tracking features for users to view their rebalanced portfolios and creditor status.
- Co-founder Nischal Shetty shared updates to keep the community informed.
Future Plans
WazirX plans to introduce a decentralized exchange (DEX) and recovery tokens (RTs), which will be tradable assets repurchased periodically using profits over three years.
The outcome of the February 19 vote is critical for WazirX's restructuring efforts. A rejection could lead to liquidation, potentially extending the recovery process until the end of 2030.
Photo: Nischal Shetty, CEO of WazirX
WazirX roadmap shows that the recovery process could stretch until the end of 2030. Photo: WazirX