The post WazirX News: Recovery Plan Underway After Lazarus Group Attack in July 2024 appeared first on Coinpedia Fintech News

Indian cryptocurrency exchange is working on a recovery plan after a cyberattack in July 2024 resulted in a loss of $235 million. The attack, which was allegedly carried out by North Korea’s Lazarus Group, severely impacted the platform, but now the exchange is focused on rebuilding trust and compensating affected users.

Recovery Plan with Singapore’s Support

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. 

However, this allows the exchange to restructure its debts and liabilities while avoiding liquidation, ensuring that users will be compensated in an organized and transparent manner.

Further, Wazirx 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. 

Restoring User Trust

WazirX founder nischal shetty nischal shetty Nischal Shetty is the Founder of India's largest and extremely trusted crypto exchange platform called WazirX. He is an entrepreneur who is passionate about technology, blockchain, crypto, and innovation. Founded WazirX in 2018 with a mission to involve every Indian in the blooming Blockchain revolution, built along with a team of passionate blockchain believers and hardcore traders. At present, he is also serving as Committer at Shardeum since February 2022 which is a sharded, infinitely scalable, community-driven completely decentralized layer 1 blockchain firm.   In 2010, Nischal became the Founder of Crowdfire which is a Software development company based in Mumbai. Via Crowdfire he helps individuals easily manage their social media profiles around multiple platforms by bringing them into a single and simple interface. Nischal Shetty began his career life holding and leading the position of Software Executive at 31 Infotech developing virtual solutions in Java and related technologies. Whereas In January 2009, he Founded Twi5 which is one stop place for discovering all the best Twitter applications and attracts thousands of visitors every day. Apart from this, he adores sharing his opinions on technology, development, and innovations. Nischal Shetty has been honored with several awards and recognitions some of which include Forbes 30 under 30, and the Inspiring CEO’s award by ET.  EntrepreneurDeveloper/ProgrammerChief Executive OfficerAuthor pointed out the importance of restoring user confidence, calling the restructuring a crucial step. “Our goal is to give users more value than what was stolen.”. 

Recovery token distributions are expected to begin soon after the court and creditors approve the plan.

However, the company estimates that users will receive about 75% to 80% of the value of their account balances at the time of the cyberattack. While the initial distributions will be made within 10 business days after the plan is finalized.

Competitor CoinSwitch Steps In

Recently Coinpedia news reported that WazirX’s competitor, CoinSwitch, has launched a fund called “CoinSwitch Cares” to support victims of the attack. The fund is around $69.9 million (600 crore INR) and aims to provide relief 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.