Indian crypto platform WazirX suffered a major hack in July 2024, losing $235 million. In response, the company announced restructuring plans.
The Hack and Its Consequences
WazirX, one of India's leading cryptocurrency platforms, suffered a significant loss following a hack, losing $235 million. This information was revealed during a virtual press conference with WazirX co-founder Nischal Shetty and representatives from the restructuring firm Kroll.
Restructuring Plan
As part of the restructuring plan, the company intends to redistribute crypto assets and attract an investor to stabilize the platform. According to Kroll's managing director Jason Kardachi, in the best-case scenario, customers could retrieve between 55% and 57% of their lost assets in tokens over the next six months. Customers wanting to withdraw funds earlier might be able to do so with a loss of up to 40%.
Platform's Future
The platform is currently discussing various partnerships and funding sources to introduce new products and monetization structures. This restructuring plan is under the supervision of a Singapore court, where WazirX's parent company Zettai has filed for a moratorium due to increasing creditor pressure. One of the major creditors is the Indian crypto exchange CoinSwitch, which has filed a lawsuit for $9.7 million.
The upcoming period will be critical for WazirX, and the company's ability to attract an external investor and efficiently restructure operations will determine the platform's future and the fate of users' funds.
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