Indian cryptocurrency exchange WazirX has taken a major step forward by securing approval from a Singapore court to reimburse customers whose funds were not stolen in the massive $235 million hack in July 2024. This decision brings some relief to affected users, but challenges remain to fully resolve. This is the result of one of the biggest cryptocurrency hacks of the year.
The process is not quick, but it may take some time as WazirX requires at least 4 months to start the repayment process.
A plan to repay funds that were not stolen
After the hack, WazirX froze all platform assets, leaving users in uncertainty. The exchange, through its Singapore-based parent company Zettai, needed court approval to begin the redemption process. Now, with court approval, WazirX can return non-stolen funds, a positive development for users.
How the Plan Works
However, refunds will not be issued immediately. WazirX’s recovery strategy includes a user voting process expected to be completed within three months. Once approved, users will receive their net liquid assets within 10 business days. The exchange plans to issue recovery tokens representing outstanding claims, allowing users to benefit from future platform revenues and recovered assets.
Zettai has committed to a three-year buyback program for these tokens, funded by platform revenues and recovered funds. WazirX also aims to launch a decentralized exchange to further its financial recovery efforts.
Efforts to recover stolen assets
WazirX has been working to recover stolen assets and recently froze $3 million worth of compromised funds. Despite these efforts, the fate of remaining stolen assets remains uncertain, adding to user concerns.
WRX token is on the rise
After this news, WRX rose nearly 10% to trade at $0.03089, a 24-hour high of $0.03272. However, even after Binance delisted the token, its future remains uncertain, raising questions about its long-term prospects.
While the court’s approval brings some hope, WazirX users are still walking down an uncertain path. The upcoming voting session is critical to determining how and when the funds will be returned. Meanwhile, traders are closely monitoring WRX’s performance as it could reflect broader confidence in the exchange’s recovery efforts.
If successfully completed, this recovery amount disclosed to investors could be rolled back to the cryptocurrency industry as Bitcoin and other assets are betting high under Trump’s leadership.