New Restructuring Plan Targets 75-80% Fund Recovery Post-Hack

WazirX, the popular crypto exchange that faced a major hack in July 2024, has released a new update regarding its fund recovery efforts. Since the hack, which resulted in the loss of around $235 million, the exchange has been under pressure from its users to recover the stolen funds. Despite sharing several updates and plans, the actual recovery process has been slow, leaving investors frustrated and anxious.

A Step Towards Transparency

As part of its restructuring efforts, WazirX has now released a preliminary creditor list along with a balance snapshot as of July 18, 2024. This move aims to ensure transparency by allowing creditors to verify their claim amounts and current balances. Each creditor can check their claims using a unique identifier (UUID), which keeps their financial information private and secure. To make things easier, the platform also offers a “Find My Balance” option, and if someone wants to inspect another creditor’s claim, they can submit a request for that.

The creditor list is arranged based on the claim amounts, from highest to lowest. Plus, the balance snapshot includes details of token balances and deposits made after the hack. WazirX insists that despite the criticism, its restructuring plan is designed to be fair and transparent for all affected users.

Recovery Timeline and Options for Creditors

Moreover, at present the creditors are waiting for their hard earned funds. Recently, WazirX has proposed a restructuring plan focused on fund recovery. The Singapore High Court has approved this plan, but there’s a catch: it aims to recover only 75% to 80% of the lost funds. This means that creditors might not get the full amount they lost.

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WazirX has given its creditors two options. If the restructuring plan is approved by the majority of creditors, they could start receiving their recovered funds by April 2025. However, if the plan is rejected, the recovery process could stretch over the next five years, making it a long and uncertain wait.

While this decision is tough for those who have already suffered losses, WazirX’s effort to regain trust through this restructuring plan is noteworthy. It’s one of the first attempts by a crypto exchange to recover hacked funds in such a structured way, setting a new precedent in the crypto world.