WazirX Recovers 85% of Lost Assets, Concludes Rebalancing

• WazirX hack victims will get 85% of their July 18, 2024 portfolio value, with first payouts in April.
• Creditors must approve the plan by February 19 with 75% support, or face liquidation under Singapore law. 

Victims of the recent WazirX hack will recover 85% of their portfolio value as  recorded on July 18, 2024, this came after the exchange’s asset rebalancing, which was concluded on Tuesday. The first distribution round is scheduled for April 2025.

WazirX Offers 85% Compensation to Victims via Rebalancing

The first round of compensation is set to begin in April. As of day of this writing, users have access to see the Indian Rupee (INR) and United States Dollars (USD) lost in July 2024 due to a $230 million hack. The Platform introduced a rebalancing process that adds extra value from tokens which were not stolen, letting users recover more assets.

This step tackles worries about WazirX’s stolen funds and helps rebuild trust in its recovery plan. For this rebalancing process to happen, it  requires 75% approval from lenders to move forward and all lenders have till Feb. 19 2025 to make their decision.

A major part of the rebalancing plan involves the introduction of  a decentralized exchange (DEX) that would release tradeable recovery tokens. These tokens will be bought back periodically over three years using platform earnings and additional revenue sources, ensuring steady compensation for those affected by the breach. Additionally, the exchange’s proactive steps seek to reduce the lasting effects of the WazirX lost funds on investor trust.

However, if the proposal is rejected by the lenders,the restructuring collapses, and the process shifts toward liquidation under section 301 of the Singapore Companies Act risking a forced sale of assets and reduced payouts to creditors as items may be sold at diminished prices. 

Last July, WazirX experienced a breach of its multisignature wallet, resulting in the theft of over $100 million in SHIB and $52 million in Ethereum, along with other assets. These stolen funds accounted for more than 45% of the total reserves reported in WazirX’s June 2024 statement, prompting an urgent restructuring to address its liabilities. 

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