WazirX Plans Partial Compensation for Hack Victims, Asset Rebalancing Complete
WazirX is set to distribute 85% of the stolen funds from its $230 million hack in July 2024 to affected users, following the completion of its asset rebalancing on Tuesday. The first round of compensation is slated to begin in April, provided that creditors approve the plan.
As of now, users can view the value of their stolen assets in both U.S. dollars and Indian rupees, and any remaining tokens that were not stolen have been redistributed among all users, boosting the total recovery amount.
Creditors have until February 19 to approve the rebalancing plan, with a 75% majority vote needed for the proposal to move forward. If approved, part of the plan includes launching a decentralized exchange (DEX), issuing recovery tokens for trade, and conducting periodic buybacks of these tokens using platform profits and new revenue streams over the next three years.
If the creditors do not approve the plan, the exchange will move towards liquidation, which could lead to a fire sale of assets under the Singapore Companies Act, resulting in reduced compensation for creditors.
The hack, which drained over $100 million in shiba inu (SHIB) and $52 million in ether, accounted for more than 45% of WazirX’s total reserves. The North Korean hacking group Lazarus is believed to be behind the attack, according to prior reports from CoinDesk.
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