WazirX users can expect to lose 40% of their funds, report

Users of Indian crypto exchange WazirX have been told that they are likely to lose more than 40% of any funds they had on the platform, following a $234 million hack in July.

WazirX is currently undergoing a restructuring process in the wake of the hack and last week asked Singapore’s high court for “breathing space” to allow it to work on finding the “fastest and most effective process for users to receive improved token recoveries.”

However, as reported by TechCrunch, according to the restructuring firm working with WazirX, customers will likely have to give up “at least 43%” of their funds.

Kroll director George Gwee said that the best users could hope for would likely be “anywhere between 55% and 57% of the funds,” with WazirX stating that its priority would be to distribute remaining token assets to users in a pro-rata manner via crypto.

According to the firm, “The impact from the cyberattack will be allocated pro-rata across users who rank equally with each other as unsecured creditors.”

It added that “users will receive a share of available token assets associated with the platform proportionate to their share of all users’ unsecured claims for their account balances.”

Any approved scheme is expected, according to the firm, to “take at least six months and is the fastest route to allowing the reopening of cryptocurrency withdrawals.”

A single malicious transaction led to $230M drained from WazirX

WazirX says it will be holding a town hall via video conference in the week commencing 2 September 2024 to explain the key features of the requested moratorium and to address user questions.

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