The post WazirX Hack Update: Singapore Court Approves Plan to Repay Customers appeared first on Coinpedia Fintech News
Indian crypto exchange WazirX has taken a significant step forward by securing approval from a Singapore court to repay customers whose funds were not stolen in the massive $235 million hack of July 2024. This decision brings some relief to affected users, although challenges remain in fully addressing the fallout from one of the largest crypto hacks of the year.
Though the process won’t be quick it may take some time as WazirX is asking for a minimum of 4 months to start the repayment process.
The Plan to Repay Unstolen Funds
After the hack, WazirX froze all platform assets, leaving users in a state of uncertainty. With its parent company Zettai based in Singapore, the exchange required the court’s green light to initiate the repayment process. The court’s approval now allows WazirX to return unstolen funds, marking a positive development for users.
How the Plan Works
However, repayment won’t happen immediately. WazirX’s recovery strategy includes a user voting process, expected to conclude within three months. If approved, users will receive net liquid assets within 10 business days. The exchange plans to issue recovery tokens representing outstanding claims, allowing users to benefit from future platform profits and recovered assets.
Zettai has committed to a three-year buyback program for these tokens, financed by platform revenues and recovered funds. Plus, WazirX aims to launch a decentralized exchange to further boost its financial recovery efforts.
Efforts to Recover Stolen Assets
WazirX has been working to recover stolen assets, recently freezing $3 million worth of compromised funds. Despite these efforts, the fate of the remaining stolen assets remains uncertain, adding to user concerns.
WRX Token Sees a Boost
Following the news, WRX gained nearly 10%, trading at $0.03089, with a 24-hour high of $0.03272. However, the token’s future remains uncertain after Binance delisted it, raising questions about its long-term prospects.
While the court’s approval offers some hope, WazirX users are still navigating an uncertain path. The upcoming voting session will be critical in determining how and when funds are returned. Meanwhile, traders are closely monitoring WRX, as its performance may reflect broader confidence in the exchange’s recovery efforts.
If done successfully this recovery amount released to investors can roll back to the crypto industry as Bitcoin and other assets are betting high under Trump’s leadership.