Crypto enthusiasts and WazirX users may finally have reason to hope for compensation following a $234 million hack that shook the platform. Over 95% of WazirX’s creditors have voiced their approval for the restructuring plan—a significant step forward after initial obstacles in the Singapore High Court.
The $234M Hack: What We Know
In mid-July 2024, a Safe Multisig wallet breach attributed to North Korean hackers drained $234 million from WazirX, a leading cryptocurrency exchange. This prompted the platform to suspend its crypto-to-Indian rupee withdrawals. Now, following months of action behind the scenes, the users may soon see results if the Singapore High Court approves the recently updated plan.
User Compensation Timeline
WazirX founder, Nischal Shetty, has promised that users will begin receiving compensation within 10 days of court approval. This marks a stark contrast to earlier predictions of a 2–3 months delay, bringing hope to nearly 150,000 affected users. These users collectively represent over $206 million in lost funds.
The new plan sees recovery tokens repurchased through WazirX profits and managed via Zanmai India under India’s Financial Intelligence Unit jurisdiction. While users remain cautiously optimistic, some skeptics continue to express concerns about the platform’s operational shifts and regulatory hurdles.
What Happens Next?
As WazirX attempts to rebuild trust, a new subsidiary, Zensui Corporation, has been incorporated in Panama to resume cryptocurrency services. Although the restructuring plan aims to conclude the saga swiftly, repayment delays could extend to 2030 if the plan falters. WazirX has urged users to align in support of the plan as liquidation would further delay the process.
The Bigger Picture: Lessons for Crypto Users
This incident underscores the importance of security in cryptocurrency platforms and showcases the risks posed by hacking incidents. Whether you’re trading major tokens like Bitcoin or exploring smaller altcoins, investing in secure cold wallets is vital to avoid similar catastrophes.
For users looking for added protection, consider investing in hardware wallets such as the Ledger Nano X. Not only does it offer cutting-edge security, but it also supports a range of cryptocurrencies for seamless storage.
Final Thoughts
WazirX’s story is a critical chapter in the evolving narrative of cryptocurrency platforms facing challenges in the digital era. Users and crypto enthusiasts alike will keep a close watch on the High Court’s decision and hope for a resolution that returns lost funds while setting critical precedents for the global crypto community.
