- WazirX Will Refund Users or is a wazirX scam, that affected users will get 85.25% of lost funds, with payouts starting in April 2025.
- At least 75% must vote by February 19, or WazirX may have to sell assets at lower prices.
- WazirX plans to launch a decentralized exchange and recovery tokens, buying them back over three years.
WazirX Announces Recovery Plan, a WazirX scam?
WazirX has announced a recovery plan for users affected by the $230 million hack that hit the exchange in July 2024. Under this plan, victims will receive 85.25% of their portfolio value as recorded on July 18, with the first round of distributions set for April 2025. The exchange has completed asset rebalancing and credited additional funds from unstolen tokens, increasing the amount users will recover. Users can now track their lost assets in both US dollars and Indian rupees on the platform. The plan aims to compensate users while restoring confidence in the exchange.
Creditor Vote Will Decide the Future
To move forward, WazirX requires creditor approval for the asset rebalancing plan by February 19, 2025. At least 75% of creditors must vote in favor for the process to continue. If rejected, the company would be forced into liquidation under section 301 of the Singapore Companies Act. This could force WazirX to sell its assets quickly at lower prices, reducing the amount creditors receive.
The hack had a major impact on the exchange’s finances, as the stolen funds made up over 45% of its total reserves. Some reports link the attack to the Lazarus Group, a notorious hacking group from North Korea.
As part of its restructuring, WazirX plans to launch a decentralized exchange (DEX) and introduce recovery tokens (RTs). These tokens will be tradable, and WazirX will periodically buy them back using platform profits and new revenue streams over the next three years.
The exchange has also added tracking features on its website and app, allowing users to see their rebalanced portfolios, past balances, and creditor status. Co-founder Nischal Shetty recently shared updates on these features, keeping the community informed.
Despite efforts to rebuild, WazirX’s future depends on creditor approval. If the vote fails, liquidation could extend the recovery process until 2030, reducing payouts importantly. The exchange is relying on users’ support to implement the recovery plan and avoid a complete financial breakdown. The February 19 vote will determine the next steps, making it a crucial moment for the exchange and its users.
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