WazirX News: Implementation of Recovery Strategy Following Lazarus Group Attack in July 2024
WazirX, an Indian cryptocurrency exchange, is working on a recovery plan after suffering a cyberattack in July 2024 that resulted in a loss of $235 million. The attack, believed to be carried out by North Korea’s Lazarus Group, had a significant impact on the platform. However, WazirX is now focused on rebuilding trust and compensating affected users.
To address the damages and move forward, WazirX has implemented a restructuring plan under Singapore’s legal system. In August 2024, its parent company, Zettai, filed a moratorium in the Singapore High Court to propose a Scheme of Arrangement. This plan allows the exchange to restructure its debts and liabilities while avoiding liquidation, ensuring that users will be compensated in an organized and transparent manner.
WazirX has assured users that it holds liquid assets worth $566.4 million USDT, which exceeds the claims of $546.5 million USDT filed by attacked users. As part of the recovery plan, WazirX will distribute recovery tokens to settle these claims.
Nischal Shetty, the founder of WazirX, emphasized the importance of restoring user confidence and called the restructuring a crucial step. The company estimates that users will receive about 75% to 80% of the value of their account balances at the time of the cyberattack. The distribution of recovery tokens is expected to begin soon after the court and creditors approve the plan.
In response to the attack, WazirX’s competitor, CoinSwitch, has launched a relief fund called “CoinSwitch Cares” to support the victims. The fund is worth $69.9 million (600 crore INR) and aims to provide assistance to affected users. CoinSwitch is also pursuing legal action against WazirX to recover $1.44 million stuck on the platform.
Through these efforts, WazirX aims to recover from the setback and regain the trust of its users, while the broader crypto community rallies to support those affected.
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