WazirX Hack: Only 55-57% of Users' Crypto to Be Returned

Monday, 2 September 2024, 06:26

Crypto assets from the WazirX hack may allow for only 55-57% recovery for users, legal advisors revealed. This comes after a significant $230-million cyberattack. With ongoing restructuring, WazirX aims to explore other options for asset recovery amidst complex ownership disputes.
Moneycontrol
WazirX Hack: Only 55-57% of Users' Crypto to Be Returned

WazirX Hack: Recovery Plans Post Cyber Attack

In the aftermath of the recent $230-million cyberattack, WazirX's legal advisors have indicated that only 55-57% of the users' crypto assets may be returned. The exchange is working with Kroll to navigate through extensive restructuring proceedings.

Management Insights from WazirX

  • Jason Kardachi, restructuring managing director at Kroll, noted that discussions are ongoing to further boost recovery.
  • Nischal Shetty, WazirX's CEO, mentioned that the goal is to restructure while avoiding immediate legal actions.
  • A six-month moratorium has been sought to hold discussions with creditors and enhance recovery options.

WazirX plans to engage with various global crypto exchanges for potential partnerships, having already signed NDAs with some players. It highlights the complicated ownership status as a significant factor in their endeavors.

Ownership Disputes Intensifying

As negotiations progress with Binance and others, the ambiguity surrounding WazirX's ownership could impact users significantly. Shetty explained that the interplay between the Singapore-based entity and Indian operations complicates capital infusion efforts.

The current legal strategy seeks to balance asset recovery while maintaining operational stability amidst investor anxieties.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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