After creditors approved its restructuring plan, WazirX has moved closer to compensating users affected by the July 2024 cyberattack. The decision relieves over 141,000 users impacted by the $230 million breach.
Between March 19 and 28, creditors participating via the Kroll Issuer Services platform supported the plan with 93.1 percent of all voters. The votes covered 94.6 percent of the total claim value and fulfilled Singapore’s legal criteria for corporate restructuring.
Singapore-registered parent firm Zettai has decided to proceed with court authorization after confirming the next steps. The company plans to initiate distribution payments to all affected parties within ten working days following court approval.
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Paid creditors holding approved verified claims worth $195.65 million will get multiphase compensation payments under the new structure. The platform’s trading options and withdrawal functions will return through a gradual process that depends on receiving regulatory approval.
Recovery Tokens and DEX Form Core of New Strategy
The approved strategy includes issuing tradable recovery tokens to users based on their claim values. WazirX will conduct buybacks of these tokens using a portion of its future revenue, providing liquidity for holders.
WazirX will introduce a decentralized exchange platform into its extended recovery strategy to expand its decentralization initiative. The platform has introduced this innovation to decrease dependency on external custody providers while creating trust between users post-hack.
The breach in July 2024 was linked to the Lazarus Group, a North Korean state-backed cybercrime outfit. The attackers exploited a private key vulnerability, allowing them to drain user funds before laundering them through Tornado Cash.
WazirX directed its blame toward Liminal for the breach even though Liminal denied responsibility while pointing out that WazirX’s systems presented weaknesses to hackers. The laundering process is performed swiftly and with such high sophistication that the stolen funds cannot be retrieved.
WazirX instructed it would have to conduct a liquidation if its request for payment deferment were denied. If the courts reject the plan, then affected users will potentially face an extended wait until 2030 for their funds, with an uncertain recovery outcome.
Ultimately, the approval signals a turning point in WazirX’s post-hack recovery efforts. The final decision now lies with the Singapore Court, whose ruling determines if payouts and platform restoration can advance.
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