WazirX to Begin Distribution of Stolen Funds Following Successful Asset Rebalancing
WazirX has confirmed that victims of its $230 million hack in July 2024 will receive 85% of their lost portfolio value, based on the figures from July 18. The exchange completed its asset rebalancing on Tuesday, with the first round of distributions scheduled for April, pending approval from creditors.
Users can now access both U.S. dollar and Indian rupee values of their lost assets, while any remaining tokens that weren’t stolen have been redistributed among users, allowing for a higher recovery percentage.
Creditors have until February 19 to approve the rebalancing plan, with a majority vote of 75% required for it to proceed. If approved, the plan includes the creation of a decentralized exchange (DEX), the issuance of recovery tokens that can be traded, and a buyback mechanism using the exchange’s future profits over the next three years.
In the event that the creditors reject the proposal, the restructuring process will fail and the exchange will be forced into liquidation under the Singapore Companies Act. This could lead to assets being sold off at lower values, resulting in reduced compensation for affected users.
The hack, which involved the theft of significant amounts of shiba inu (SHIB) and ether, was attributed to the Lazarus Group, a North Korean cybercriminal group. The stolen funds represented more than 45% of WazirX’s total reserves, forcing the exchange into a restructuring plan to cover its liabilities.
