The cryptocurrency exchange WazirX is finding ways to return over $235 million to users following a recent cyberattack, having finalized its restructuring process.
Updated Recovery Plan
WazirX is preparing to hold a final vote to approve a minor but essential change in the recovery scheme that will shift fund distribution responsibilities to Zanmai India. This company is registered with India’s Financial Intelligence Unit and will directly oversee the distribution process.
Cyberattack and Consequences
After the hack, WazirX faced a severe asset shortfall and lacked the resources to cover the loss immediately. Court filings revealed a 45 percent gap between assets and liabilities, necessitating a phased recovery approach for user fund returns.
Rebuilding User Trust
WazirX also plans to introduce a Proof-of-Reserve system to publicly display the company’s holdings and demonstrate ongoing solvency. Following the final vote, fund distribution is expected to begin within weeks.
The WazirX management team remains focused on resuming operations and prioritizing user payouts, despite competitive pressures and legal actions from certain creditors in Singapore.
