Indian cryptocurrency exchange WazirX has announced a structured recovery roadmap for victims of the July 2024 hack, which resulted in a $235 million loss. The repayment schedule will depend on creditor approval, and if the proposal is rejected, victims may have to wait until 2030 for full compensation.
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🔍 WazirX Hack Recovery Plan: What You Need to Know
On Tuesday, February 5, 2025, WazirX released an official statement on X (formerly Twitter), outlining two potential repayment timelines. The success of the recovery initiative relies on at least 75% creditor approval. If approved, repayments could begin in April 2025, but a rejection would delay reimbursements by several years.
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Key Highlights of the Recovery Plan:
- The restructuring proposal will be put to a vote in the coming weeks.
- If approved, the first repayment round will begin within 10 business days of plan activation.
- The initiative aims to restore trust and strengthen the exchange’s operational framework.
📌 Details of the WazirX Restructuring Proposal
The recovery roadmap includes several innovative measures to compensate affected users and rebuild the platform:
1. Net Liquid Asset Distribution
- The first phase of repayment will be conducted using recovered funds and liquid assets.
2. Decentralized Exchange (DEX) Launch
- WazirX plans to launch a DEX to enable transparent and secure trading.
- The move aligns with the decentralization trend in the crypto industry.
3. Issuance of Recovery Tokens
- Affected users will receive special recovery tokens that can be traded on secondary markets.
- These tokens will serve as a compensation mechanism, offering liquidity options for victims.
4. Periodic Token Buybacks
- WazirX will use platform profits and new revenue streams to repurchase recovery tokens.
- This approach is designed to gradually increase the token’s value, benefiting the victims.
🔎 Inside the WazirX Hack: Breach, Shutdown & Investigation
The July 2024 cyberattack on WazirX resulted in a $235 million loss, leading to a temporary shutdown of trading activities.
Hack Details & System Shutdown
- Hackers exploited internal system vulnerabilities to access funds.
- WazirX immediately suspended withdrawals of Bitcoin (BTC) and Ethereum (ETH) to mitigate further losses.
Investigation & Legal Action
- Indian law enforcement agencies conducted a detailed probe into the incident.
- Investigators discovered that the breach was not an internal systems failure but a fraudulent Telegram account sale.
- In November 2024, Delhi Police arrested a suspect from Bengal in connection with the crime.
📈 Implications & Future of WazirX
The recovery plan aims to regain user confidence and rebuild the exchange’s reputation. Key outcomes include:
✔ Improved security protocols to prevent future breaches.
✔ New revenue models supporting the sustainability of repayment efforts.
✔ Potential market resurgence with the launch of DEX and recovery token initiatives.
🚨 Important Disclaimer
This article is for informational purposes only and should not be considered financial advice. Crypto markets are highly volatile—always conduct your own research before making any investment decisions.
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