WazirX, an Indian cryptocurrency exchange, has reportedly received approval from the Singapore High Court for a restructuring plan to reimburse users who lost funds in a $230 million hack in July 2024.
The court’s approval, granted on January 23 under the Companies Act 1967, allows WazirX’s parent company, Zettai, to implement a recovery process to restore 75% to 80% of the lost funds and avoid liquidation of the exchange.
The restructuring plan includes distributing recovery tokens to affected users. These tokens represent the remaining claims and give holders a share of future profits and recovered assets. Initial payouts are expected to start within 10 business days after the plan is approved. Further claims will be linked to periodic buybacks, financing the platform’s revenues and profits.
Zettai has also pledged to launch a decentralized exchange and implement a three-year buyback program for recovery tokens, using funds from recovered assets and operational earnings.
A key plan component is a user voting process, which is expected to conclude within three months. If approved by most creditors, the scheme will be activated, and net liquid assets will be distributed to users based on their claims, including gains from market movements. An independent third-party audit will also be conducted to ensure transparency.
WazirX’s recovery efforts include freezing $3 million worth of USDT on January 17, believed to be part of the stolen funds, by collaborating with U.S., Japan, and South Korean authorities. The Singapore High Court emphasized the need for a swift resolution, favouring restructuring over liquidation, supported by financial projections from Kroll highlighting potential benefits to creditors.
Notably, The July 2024 breach, which targeted WazirX, affecting one of its multisig wallets and resulting in a loss of $230 million in customer funds, was attributed to North Korea’s Lazarus Group. Since then, its team has been actively investigating the breach and temporarily suspending withdrawals to safeguard users’ funds.
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