WazirX secures court approval to repay $235M to hack victims
WazirX (CRYPTO:WRX), an Indian cryptocurrency exchange, has received approval from the Singapore High Court for its restructuring plan aimed at repaying users affected by a significant cyberattack.
The attack, which occurred in July 2024, resulted in the loss of $235 million and was attributed to North Korea’s Lazarus Group.
On January 23, the court's decision allows WazirX to initiate a process for recovering and distributing customer funds that were not stolen during the hack.
The restructuring plan, filed by Zettai, WazirX's parent company, is designed to facilitate creditor recovery while avoiding liquidation.
WazirX estimates that users may recover between 75% and 80% of their account balances through a combination of direct token distributions and newly introduced recovery tokens.
These recovery tokens will represent remaining claims and allow users to benefit from future profits generated by the platform.
A user voting process will be conducted to finalise the distribution plan, expected to conclude within three months.
If the majority of users vote in favor, net liquid assets will be distributed within ten days of approval.
The court emphasised the importance of a swift resolution for users and supported restructuring over liquidation.
Additionally, WazirX has frozen $3 million from the stolen funds and is collaborating with authorities in the US, Japan, and South Korea to recover more assets tied to the attack.
The restructuring is being carried out under Singapore's Scheme of Arrangement, which allows companies to propose binding agreements with creditors.
While many users express optimism about recovering their funds, concerns remain regarding the retrieval of stolen assets.
At the time of reporting, the WazirX (WRX) price was $0.02878.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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