WazirX Completes Asset Rebalancing for Hack Victims
Victims of the WazirX hack will receive 85% of their portfolio value as recorded on Jul.18, as the exchange has finished its asset rebalancing process. The first round of distributions is set to begin in April.
On Tuesday, users were able to view the U.S. dollar and Indian rupee values of assets lost in the $230 million hack that occurred in July 2024. The remaining tokens that were not stolen have been distributed among all users, allowing for a higher amount to be returned to the victims.
Creditors now have until Feb.19 to accept the rebalancing plan, with a 75% majority vote needed for the scheme to proceed. If approved, the plan includes launching a decentralized exchange (DEX), issuing recovery tokens that can be traded, and conducting periodic buybacks using platform profits over the next three years.
If the restructuring plan is not accepted, the process will move towards liquidation under section 301 of the Singapore Companies Act. This could result in a fire sale of assets and creditors receiving less compensation as assets are sold at potentially lower values.
Last July, WazirX experienced a security breach in one of its multisig wallets, leading to the loss of over $100 million in shiba inu (SHIB) and $52 million in ether, among other assets. The stolen funds represented more than 45% of the total reserves reported by the exchange in June 2024, prompting the need for a restructuring process to address liabilities. The attack is believed to be the work of the North Korean hacking unit Lazarus, according to previous reports.