WazirX Finalizes Asset Rebalancing Plan Following Major Hack

WazirX Unveils Recovery Plan After Significant Hack

WazirX, a prominent cryptocurrency exchange, has finalized an asset rebalancing plan aimed at compensating users affected by a major hack in July 2024. The plan proposes that eligible users receive 85% of their portfolio value as of July 18, provided a 75% majority of creditors approve the scheme by February 19.

Consequences of Creditor Approval or Rejection

If approved, WazirX will implement a recovery strategy including the launch of a decentralized exchange (DEX), issuance of tradable recovery tokens, and a token buyback plan over three years using profits. Conversely, rejection could lead to liquidation under Singapore's Companies Act, potentially resulting in lower returns for creditors due to asset devaluation.

Details of the July 2024 Hack

The hack, attributed to North Korea's Lazarus group, resulted in the theft of over $100 million in SHIB and $52 million in ETH, comprising 45% of WazirX's reserves. This significant loss underscored the vulnerability of cryptocurrency platforms.

Post-Rebalancing Actions and User Impact

Following rebalancing, users can now view their lost assets' value in USD and INR. Additionally, the upside from unstolen tokens is being distributed among all users, enhancing the recovery amount for those affected.

This structured approach by WazirX demonstrates a commitment to user compensation and platform recovery, emphasizing the importance of creditor approval for a favorable outcome.