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WazirX Asset Loss Update: 43% of Customer Funds Might Be Gone Forever

Sep 2, 2024
  1. Details of the Hack
  2. Expert Insights
  3. Recovery of Lost Funds

In a recent press conference, legal experts provided a grim update for WazirX customers hoping to recover their lost crypto assets following the devastating hack in July that saw $234 million disappear from the exchange.

Details of the Hack

The hack, which impacted around 45% of customer funds, has left many users in a precarious financial situation. Despite efforts to manage the crisis, a full recovery of the funds seems unlikely.

Expert Insights

At the press conference, WazirX co-founder Nischal Shetty revealed that at least 43% of customer funds are unlikely to be recovered. George Gwee, director of restructuring expert Kroll, warned that the best-case scenario would see customers recovering only 55% to 57% of their lost assets.

The best-case scenario would see customers recovering only 55% to 57% of their lost assets.George Gwee

Recovery of Lost Funds

The WazirX team has been working hard to mitigate the impact of the hack, but the road to recovery is challenging. Legal counsel pointed out that the possibility of recouping funds denominated in US dollars largely depends on market improvements—a factor that remains uncertain in the volatile world of cryptocurrency.

While the WazirX team promises to explore every avenue to close the funding gap, the harsh reality is that a full recovery of losses seems increasingly unlikely.

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