WazirX Users Face Uncertain Recovery After $234 Million Hack
WazirX Users Face Uncertain Recovery After $234 Million Hack
WazirX, an Indian cryptocurrency exchange, is grappling with the aftermath of a significant hack totaling $234 million that transpired in July. In a recent disclosure made by George Gwee from Kroll, the firm aiding WazirX's restructuring, it was revealed that the likelihood of users fully recovering their funds is bleak.
Potential Recovery Rates and Strategies
- At least 43% of funds may be permanently lost.
- Best-case recovery scenarios estimate 55%-57% of assets might be returned.
- WazirX is requesting six months of protection from the Singapore High Court.
- The company's primary goal is to distribute remaining token assets pro-rata to users.
Future Plans and Financial Arrangements
- WazirX is exploring profit-sharing plans tied to its revenue-generating products.
- Discussions with an unidentified investor to raise capital are underway, excluding equity due to disputes with Binance.
- Ongoing negotiations clarify Binance's ownership amidst past controversy following their acquisition announcement in 2019.
The situation remains fluid as the potential for legal actions against Binance and Liminal, the wallet provider implicated in the breach, hangs in the balance. Moreover, WazirX is being challenged by a lawsuit from CoinSwitch, further complicating the exchange's recovery plans.
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.