One of India's leading cryptocurrency exchanges. Reports indicate that the North Korean Lazarus Group allegedly stole over $235 million from WazirX during the incident. Nevertheless, WazirX is not backing down. The exchange has initiated a massive restructuring plan in order to comply with the regulations of Singapore. This article explains the details of the recovery plan, the actions taken to rebuild the reputation and financial health of WazirX, and the steps the company will take to compensate affected customers.
WazirX’s Restructuring Strategy and Financial Recovery
In August 2024, the holding company of WazirX, Zettai, declared an application for a Singapore Scheme of Arrangement in order to address the impact of the Cyberattack. The Singapore Scheme of Arrangement is a legal process that enables a business to restructure its obligations and liabilities instead of going through administration. WazirX had a 45% asset-to-liability ratio before the attack. However, it now has $566.4 million in liquid assets, that is sufficient to pay for the $546.5 million in user-submitted claims. This guarantees that the exchange will be able to repay users for most of their losses.
Settlement via recovery tokens and upcoming reforms.
WazirX is issuing recovery tokens to settle claims. Up to 75–80% of the users' account balances at the time of the theft will be represented by these tokens. Within ten business days after the plan's approval, these tokens will be given for the first time.
WazirX also plans on developing a Decentralized Exchange (DEX) in order to make money in the future. By allowing the exchange to function in decentralized trends, the DEX will increase its potential revenue and help users get their money back.
CoinSwitch’s role
CoinSwitch, involvement as a rival CoinSwitch, of WazirX, has established a 600 crore INR ($69.9 million) recovery fund to aid hack victims. In addition, CoinSwitch is suing WazirX to recover 2% of the $1.44 million (12.4 crore INR) in funds left on the exchange due to the attack. This act indicates the unity of the Indian cryptocurrency sector and the increased competitiveness pressures after the attack.
To recover from the break and try to gain users' trust is the restructuring strategy of WazirX. The exchange aims to reimburse affected customers and provide a more secure future through its DEX. For that, they are establishing recovery tokens and keeping sufficient liquidity for user claims.
