WazirX Plans Repayment for $235 Million Hack Pending Creditor Approval

Victims of the July 2024 cyberattack on Indian crypto exchange WazirX may receive full repayments following a $235 million hack. The exchange shared a roadmap outlining two repayment scenarios, dependent on creditor approval.

Key points:

  • If creditors approve the restructuring plan, recovery could start in April 2025.
  • If rejected, repayments may be delayed until 2030.
  • The plan requires over 75% creditor approval by value.
  • WazirX will restart trading and initiate repayments within 10 business days if approved.

Recovery strategy includes:

  • Allocation of recovered funds to affected creditors.
  • Development of a decentralized exchange (DEX).
  • Issuance of recovery tokens tradable on secondary markets.
  • Regular buybacks of recovery tokens using platform profits.

These measures aim to repay creditors and restore market confidence.

The hack resulted from internal vulnerabilities and led to the suspension of withdrawals for assets like Bitcoin and Ethereum. Investigations revealed the breach involved a fraudulent account scheme sold via Telegram. A suspect was arrested in November 2024.