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WazirX Users Face Tough Choice: Accept New Plan or Wait Until 2030 For Refund
WazirX, India’s largest cryptocurrency exchange, has put its users in a difficult position. Almost six months after a massive $235 million hack, it is asking users to make a hard choice: agree to a new recovery plan or wait until 2030 for fund recovery.
The latest plan outlined by WazirX presents two options for its users. The first option is to approve a new restructuring plan that includes the launch of a decentralized exchange (DEX) and issuing recovery tokens. If this scheme is approved, the exchange will restart operations in April 2025, with initial payouts starting within ten business days. The recovery tokens can be traded, and the platform promises periodic buybacks using profits and new revenue streams.
However, if the plan is rejected by users, WazirX will move towards liquidation under Singapore’s Companies Act. This process could result in a fire sale of assets, potentially leaving users with significantly less compensation due to lower asset values and delays.
The proposal has sparked a lot of criticism, especially within the Indian crypto community. Many users feel that WazirX is pressuring them into accepting the new plan by threatening a long wait for recovery. They argue that the plan isn’t a real solution but a way for WazirX to benefit from the situation.
Furthermore, there are concerns about how the remaining funds are being used. Some users have claimed that money intended to reimburse them has been spent on legal fees, making the situation even more frustrating for those affected by the hack.
It is worth noting that WazirX was hacked in July 2024 by the North Korean group Lazarus. Over $230 million in user funds were stolen, with the hackers using Tornado Cash to obscure transactions. The exchange has kept its operations suspended since then, hoping to find a solution.
Instead of offering a direct reimbursement, the exchange has linked the recovery process to a new business venture that has many of its users questioning the fairness of the approach.
Source: coinpedia.org
