WazirX $235M Hack Repayment Could Stretch to 2030 Without Creditors Approval
Indian crypto exchange WazirX has announced a comprehensive recovery roadmap for victims of its July 2024 hack, with repayment timelines contingent on creditor approval.
The recovery plan requires 75% creditor approval and includes innovative measures like DEX launch and recovery tokens for victim compensation.
Investigation revealed hack originated from fraudulent Telegram account sale, leading to arrest of suspect from Bengal region.
The exchange commits to rebuilding trust through transparent operations and systematic token buybacks using new revenue streams.
Victims of the July 2024 cyberattack on Indian crypto exchange WazirX may soon receive full repayments for their lost assets following the $235 million hack. On Tuesday, the exchange shared a visual roadmap on X (formerly Twitter) detailing two distinct repayment scenarios, emphasizing that the timeline for reimbursements now lies in the hands of its creditors.
If creditors approve the proposed restructuring plan, the recovery process could begin as early as April this year. However, if the majority rejects the proposal, repayments could be delayed until as late as 2030.
Restructuring Proposal Details and Repayment Terms
The restructuring plan, which is set to be put to a vote in the coming weeks, requires approval from over 75% of creditors (by value) for the scheme to take effect. If approved, the plan will kick off in April 2025, triggering a series of recovery measures designed to restore some measure of trust and stability.
Under the approved proposal, WazirX will restart trading operations and initiate the first round of repayments within 10 business days of the scheme’s activation.
Distribution of Net Liquid Assets: Initial repayments will be made by allocating recovered funds to affected creditors.
Decentralized Exchange Launch: The plan includes the development of a decentralized exchange (DEX) to facilitate more transparent and efficient trading.
Issuance of Recovery Tokens: Creditors will receive recovery tokens that can be traded on secondary markets, providing a mechanism to recoup part of their losses.
Periodic Token Buybacks: Using platform profits and new revenue streams, WazirX will perform regular buybacks of recovery tokens, aiming to enhance their value over time.
These steps are designed not only to repay creditors but also to rebuild the exchange’s operational framework and restore market confidence.
Inside the Hack: Breach, Shutdown, and Legal Fallout
WazirX became the target of a massive cyberattack in July 2024, which resulted in a staggering $235 million in stolen funds.
Reports indicate that the breach occurred through internal system vulnerabilities exploited by the hackers.
Law enforcement agencies in India also intervened in the matter and opened an investigation. During the probe, investigators concluded that the breach was not due to internal system vulnerabilities but was orchestrated through a deceitful scheme involving the sale of a fraudulent account via Telegram.
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Chimamanda is a crypto enthusiast and experienced writer focusing on the dynamic world of cryptocurrencies. She joined the industry in 2019 and has since developed an interest in the emerging economy. She combines her passion for blockchain technology with her love for travel and food, bringing a fresh and engaging perspective to her work.