WazirX’s $235 Million Hack: How They Plan to Save Your Funds!

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One of India’s leading crypto trading platforms WazirX, was severely affected by a $235 million hack in July 2024. In response, the company has announced the intention to reorganize crypto balances and to find a white knight to stabilize the plat and provide the necessary amount of money for healing. 

This information was revealed during a virtual press conference held recently with Nischal Shetty, the co-founder of WazirX and officials from Kroll the restructuring firm involved in the matter where it was revealed that WazirX customers would be stripped of roughly 43% of their money. 

Kroll’s managing director, Jason Kardachi opined that the best-case scenario would enable customers to get back between 55% and 57% of their lost property. The remaining tokens, expected to be distributed over the next six months, will be elected through a pro-rata method, not fiat money. 

Currently, WazirX is in talks for various partnerships and funding to bring in new products and structures for monetization with an intention of sharing the revenues with the users. 

The restructuring plan implies the restoration of stolen digital assets, and for customers who, for one reason or another, need to withdraw their money earlier, it is also possible to withdraw funds, but with a loss of up to 40%. 

The unfolding restructuring process is under the supervision of a Singapore court, to which Zettai, WazirX’s parent company, filed for a moratorium on August 23, 2024. This legal protection is necessary since the company is increasingly receiving pressure from creditors, such as CoinSwitch, a leading Indian-based crypto exchange that has filed a lawsuit to recover $9.7 million worth of assets frozen on WazirX’s digital platform.

During the town hall, the WazirX representatives were unable to give clear answers as to whether there were any legal proceedings against Binance or Liminal, the compromised wallet provider during the hack. 

While at this stage this is a complex and very challenging period to steer WazirX, the company’s ability to secure a white knight investor and efficiently reorganize its operations will decide the future of the platform and the destiny of users’ money resting on it

Also Check Out: August 2024 Crypto Hacks and Losses: $313M Lost in 30 Days