WazirX to Discuss Compensation with Hack Victims

A Singaporean court has granted the Indian cryptocurrency exchange WazirX the right to organize a meeting with clients affected by the hack in July 2024. This was reported on the platform’s blog.

During the online meeting, representatives of Zettai, the Singaporean company operating the exchange, plan to discuss with users a debt restructuring scheme and compensation payments.

The team is considering the distribution of rebalanced liquid assets of the exchange, the issuance of special recovery tokens (RT) to be distributed to victims and later repurchased as part of the compensation for losses, as well as a mechanism for funding the repurchase of RT through a portion of operational income.

The developers plan to reactivate the WazirX platform with the launch of its own DEX and a number of other innovations.

The proposal will be put to a vote among creditors. If the majority supports the scheme, the exchange commits to distributing liquid assets within 10 days.

“I thank the court for allowing the meeting on the [compensation] scheme and recognizing our efforts. We will leave no stone unturned to ensure users receive their funds back as soon as possible, and urge a vote in favor of the scheme,” said WazirX founder Nischal Shetty.

The court has granted the exchange operator company a 16-week moratorium to conduct the necessary procedures.

Thanks to the joint efforts of authorities in the US, Japan, and South Korea, it was revealed that the attack was linked to perpetrators from the North Korean hacker group Lazarus. Analysts at Elliptic reached a similar conclusion.

Previously, $3 million in stablecoins related to the incident were tracked and frozen.

In 2024, cybercriminals caused over $3 billion in losses to the crypto industry. The WazirX hack was the third largest.