WazirX, a prominent cryptocurrency exchange based in India, is poised to restart its operations after suffering a devastating hack that led to a loss exceeding $230 million last year. The revival of the platform is contingent upon a key ruling from the Singapore High Court, anticipated on May 13. If the court endorses WazirX’s restructuring and user compensation proposals, the exchange could reopen within ten business days.
What Caused the Major Security Breach?
The breach, which targeted WazirX’s multi-signature wallets in July 2024, resulted in the theft of significant assets. Following investigations, authorities linked the attack to the infamous Lazarus Group, known for their involvement in previous large-scale hacks, including a $1.4 billion theft from the Bybit exchange. Moreover, a portion of the stolen funds was reportedly laundered using cryptocurrency mixers.
Will Users Get Their Money Back?
To safeguard users and ensure ongoing operations, Zettai, the Singapore-based entity associated with WazirX, has devised a restructuring plan. This plan received overwhelming support of 93.1% from creditors, representing a staggering 94.6% of total claims. It is projected that users will recover about 85.3% of their losses, alongside the issuance of new “Recovery Tokens” aimed at further enhancing value recovery.
WazirX has communicated that legal investigations for recovering lost assets will run parallel to the restructuring efforts. The exchange is also committed to addressing the non-liquid part of user funds gradually over time.
Upon receiving court approval, WazirX plans to initiate user distributions and resume exchange operations within ten business days. However, the company has acknowledged that the court’s decision is outside its influence and will abide by whatever ruling is made.
Despite these developments, questions linger regarding the exchange’s ability to regain its former operational status and restore user trust.
- WazirX is set for a relaunch, pending court approval.
- The hack involved over $230 million in losses linked to the Lazarus Group.
- Users might recover around 85.3% of their losses with the restructuring plan.
As WazirX navigates these challenges, the cryptocurrency community watches closely to see if the platform can overcome its troubled past and rebuild confidence among its users.
