WazirX has given its creditors a rather tough choice to make. According to official reports, WazirX creditors can start to receive their stolen crypto as early as April, or in 2030, based on the outcome of a voting scheme, scheduled for the coming weeks.
Creditors of the hacked Indian crypto exchange will have to vote on whether to approve the restructuring scheme. If the majority, or more than 75% by value of voting creditors, vote yes, the scheme becomes effective in April 2025, as previously approved by a Singapore court.
WazirX to Resume Trading If Restructuring Plans Goes Through
If the plan is approved during voting, the platform is expected to resume trading operations. Initial rewards, including the distribution of net liquid assets, are promised within 10 business days of the scheme’s implementation.
The refund plan includes the following steps: establishing a decentralized exchange (DEX), issuing tradeable recovery tokens, and periodically repurchasing recovery tokens with platform revenues and additional sources of income.
Also Read: WazirX Successfully Freezes First Wave of Stolen Assets Worth $3M From North Korean Hackers
WazirX Hack: What Had Happened?
The Indian cryptocurrency exchange WazirX suffered a hack in July 2024 that cost investors over $234.9 million. WazirX’s multisig wallet required three WazirX and one Liminal signature in order to initiate transactions.
It was controlled by five WazirX and one Liminal signature. However, after creating a phony WazirX account, hackers started buying Gala (GALA) tokens and depositing tokens. They drained the heated wallet and then went to the cold wallet.
The smart contract that controlled the multisig wallet was changed by the hackers when WazirX signatories gained access to it. After it was changed to their advantage, the attackers took complete control, ran out of WazirX’s keys, and spent all the money.
According to the crypto exchange’s June 2024 proof-of-reserves declaration, it had roughly $500 million in digital assets prior to the attack.
Singapore High Court’s Approval For WazirX Restructuring Plan
WazirX’s restructuring plan, which has been granted by the Singapore High Court, will make it easier to return between 75% and 80% of the client money that was stolen.
But even with this ruling, a lot of victims are still suspicious of the procedure. Their worries are a reflection of persistent uncertainty about whether they will be able to recoup all of their lost assets and whether the plan will successfully address the requirements of everyone involved.
The incident caused a great deal of anguish for customers, as many of them were unable to retrieve their remaining funds. In order to shield itself from litigation from unhappy users, WazirX requested and was granted a four-month court order in September 2024. However, with the constant delays, creditors are currently swinging between doubts.
Also Read: CoinSwitch Comes To The Rescue, Announces Over $70 Million Recovery Plan For WazirX Victims