- WazirX secured court approval for restructuring, aiming to repay 75%-80% of funds from $235M cyberattack.
- Recovery tokens will allow affected users to benefit from WazirX profits and recovered assets over time.
- WazirX collaborates with global authorities to trace stolen funds, recovering $3M USDt so far.
The Singapore High Court approved WazirX’s restructuring plan on January 23 under the Companies Act 1967. This plan aims to recover $235 million lost in a July 2024 cyberattack by North Korea’s Lazarus Group. Zettai, WazirX’s parent company, proposed the plan to repay customers and prevent liquidation.
The court prioritized a swift resolution and supported restructuring over liquidation, citing financial projections from Kroll. It confirmed there was no evidence of WazirX’s wrongdoing in the attack. WazirX will now proceed with a structured recovery process to compensate affected users.
Customer Compensation Measures
WazirX has outlined a detailed plan to compensate users affected by the cyberattack. The exchange will begin initial payouts within 10 business days after the scheme is implemented. Users can recover 75% to 80% of their account balances through token distributions.
Recovery tokens will represent remaining claims and provide users access to platform profits and recovered assets. Zettai has committed to repurchasing these tokens over three years using future profits. This strategy ensures long-term support for affected users while stabilizing WazirX’s operations.
Ongoing Efforts and Future Plans
WazirX froze $3 million in stolen USDt on January 17 as part of its recovery efforts. The company collaborates with U.S., Japanese, and South Korean authorities to trace additional stolen funds. These joint efforts demonstrate WazirX’s dedication to recovering assets and ensuring accountability.
The exchange plans to launch a decentralized platform, using its profits to buy back recovery tokens. This initiative will enhance user confidence and improve the platform’s overall functionality. The restructuring provides a legal framework for WazirX to address customer claims effectively.
WazirX’s efforts reflect its commitment to restoring trust and protecting users from future incidents. The company’s transparent approach aims to ensure a stable and secure platform for its customers.
