WazirX Announces $235M Cyberattack Recovery Plan Under Singapore Court

News

  • WazirX launched recovery tokens to compensate users, covering up to 80% of their cyberattack losses.  
  • CoinSwitch introduced a $69.9M fund to support WazirX victims.  
  • WazirX aims to rebuild trust with a court-approved plan, focusing on user compensation and platform recovery. 

WazirX, an Indian cryptocurrency exchange, revealed a recovery plan after suffering a $235 million cyberattack in July 2024. The Lazarus Group, a North Korean cybercriminal organization, reportedly executed the attack. To address the crisis, WazirX’s parent company, Zettai, filed for a moratorium at the Singapore High Court in August 2024.  

The company seeks to restructure its debts under a Singapore Scheme of Arrangement. This court-approved process allows companies to resolve liabilities while avoiding liquidation. WazirX reported $566.38 million in liquid assets as of December 2024, exceeding the $546.47 million claims filed by affected users.  

Recovery Tokens to Compensate Users

WazirX has introduced recovery tokens to settle outstanding claims. These tokens enable users to recover 75% to 80% of their account balances. The company plans to start initial distributions 10 business days after the court and creditors approve the scheme.  

Remaining claims will be represented through recovery tokens, periodically repurchased with profits generated from WazirX’s operations. The company also plans to launch a decentralized exchange (DEX) to create additional revenue. This initiative will support the long-term compensation of users.  

Nischal Shetty, the WazirX founder, described the restructuring as a vital step in rebuilding user trust. He emphasized the importance of delivering value to compensate for the losses caused by the attack.  

CoinSwitch Launches Support Fund

CoinSwitch, a competing cryptocurrency exchange, announced a recovery fund worth 600 crore Indian rupees ,$69.9 million. CoinSwitch officially launched the fund, named CoinSwitch Cares, on January 7, 2025, to assist victims of the WazirX attack.  

CoinSwitch also initiated legal action against WazirX to recover $1.44 million of its funds allegedly stuck on the platform. The legal action seeks to resolve disputes while providing relief to affected users. Both exchanges have faced scrutiny following the attack. WazirX focuses on compensating users, while CoinSwitch’s fund offers an additional lifeline. These developments underline the challenges cryptocurrency platforms face in securing assets and restoring public trust.  

The post WazirX Announces $235M Cyberattack Recovery Plan Under Singapore Court appeared first on Cryptonewsland.

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