WazirX, the popular Indian cryptocurrency exchange, has announced plans to resume trading by February 2025, with a new recovery initiative aimed at compensating victims of the $235 million hack that led to the suspension of its operations. The company will introduce “recovery tokens” to help creditors recover up to 48% of their lost funds.
During a recent town hall session streamed on YouTube, WazirX co-founder Nischal Shetty outlined the steps the company is taking to make victims whole. These recovery tokens will be distributed on a pro-rata basis and can be traded within the platform. A portion of the platform’s revenue will be dedicated to repurchasing these tokens, accelerating the recovery process.
To bolster its recovery efforts, WazirX plans to diversify its services, introducing features such as crypto staking, an over-the-counter (OTC) desk, and futures trading to generate additional revenue. The company is also in the early stages of developing a decentralized exchange (DEX), which will offer self-custody options in response to user demand. The DEX will include a native governance token, allowing users to participate in its ecosystem and earn rewards while enhancing liquidity.
Revenue generated by the DEX will also be directed toward the recovery fund. Users will have the option to swap recovery tokens for the DEX tokens, further integrating the recovery process into the platform’s future growth.
In addition to these measures, WazirX is exploring partnerships with “white knight” investors to secure rescue financing and is looking to sell tokens held by third parties to recover additional funds. The exchange also emphasized its commitment to legal action to reclaim stolen or illiquid assets for the benefit of its creditors.
The hack, which occurred in July 2024, forced WazirX to suspend operations and initiate a restructuring process through its parent company, Zettai, based in Singapore. To date, the platform has allowed users to withdraw 55% of their cryptocurrency holdings and 66% of their fiat deposits. However, the remaining funds are still inaccessible.
WazirX is facing increased scrutiny from Indian regulators, with the Financial Intelligence Unit reportedly investigating the platform. Additionally, a group of affected users has filed a class-action lawsuit with India’s National Consumer Disputes Redressal Commission, alongside two other legal cases filed in the Delhi High Court.
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