WazirX Users Unlikely to Recover Full Funds After $234 Million Hack

WazirX users have been informed that they might lose over 40% of their funds due to a $234 million hack that occurred in July.

The Indian crypto exchange is currently in the midst of a restructuring process following the breach and has requested additional time from Singapore’s high court to implement a strategy that maximizes token recovery for its users.

According to TechCrunch, the restructuring firm assisting WazirX has indicated that customers may need to forfeit at least 43% of their assets. Kroll’s George Gwee mentioned that the most optimistic scenario would see users recovering between 55% and 57% of their funds. WazirX aims to distribute any remaining assets to users on a pro-rata basis through cryptocurrency.

The firm explained that the losses from the cyberattack would be shared proportionally among users, who are classified as unsecured creditors. The distribution will be based on users’ claims relative to their account balances.

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The entire process is expected to take a minimum of six months, which is deemed the quickest way to resume cryptocurrency withdrawals. WazirX plans to hold a video town hall during the week of September 2, 2024, to outline the details of the proposed restructuring and answer user inquiries.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.