WazirX has revealed that customers are unlikely to recover all their funds following a massive $234 million hack in July.
At least 43% of the funds held by customers may be permanently lost.
WazirX is planning to distribute any remaining token assets to users on a pro-rata basis via crypto.
WazirX, an Indian cryptocurrency exchange platform, has revealed that customers are unlikely to recover all their funds following a massive $234 million hack in July. According to George Gwee, a director at Kroll, the restructuring firm working with WazirX, at least 43% of the funds held by customers may be permanently lost.
In an update, Gwee shared that the best possible outcome from the ongoing restructuring process is the recovery of “anywhere between 55% and 57% of the funds.”
WazirX is planning to distribute any remaining token assets to users on a pro-rata basis via crypto. Additionally, the company is exploring ways to share profits from its revenue-generating products, although no specific details have been provided, reports TechCrunch.
Also read: WazirX hack: Confusing aftermath of the biggest cyberattack on Indian crypto exchange
The hack, which is the largest cryptocurrency theft in India’s history, has significantly impacted the country’s crypto industry. Since the incident, WazirX has been striving to find solutions to return funds to its customers. In July, the company proposed absorbing the loss through a “force majeure” clause.
During a press conference, WazirX officials were evasive about their strategies for securing capital. The company is negotiating with an undisclosed white knight investor. However, it stated that they will not raise capital against equity due to a dispute with Binance, the world’s largest cryptocurrency exchange. Binance and WazirX had a close relationship, with Binance announcing its acquisition of WazirX in 2019, only to later dispute the deal. Binance eventually stopped providing tech services to WazirX in 2022.
When asked about Binance’s ownership of WazirX or the possibility of selling the company as part of the restructuring, WazirX declined to comment.
Adding to WazirX’s troubles, CoinSwitch, another major Indian crypto exchange, last week initiated legal action against WazirX to recover about $9.7 million worth of assets stuck on the platform.
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Ayushi Jain
Tech news writer by day, BGMI player by night. Combining my passion for tech and gaming to bring you the latest in both worlds. View Full Profile
