WazirX Customers Unlikely to Fully Recover Funds After $230M Heist
Indian cryptocurrency exchange WazirX, which experienced a $234 million hack in July, is unlikely to fully recover its customers' funds due to the ongoing restructuring process. George Gwee, a director at restructuring firm Kroll, indicated that at least 43% of customer funds are unlikely to be recovered. The best-case scenario is a return of between 55% and 57% of the funds. WazirX's priority is to distribute the remaining token assets to users in a pro-rata manner via cryptocurrency. The exchange has requested six months' protection from the Singapore High Court while it restructures its liabilities.
The hack, the largest cryptocurrency theft in India to date, has significantly impacted the country's crypto industry. Legal advisers for WazirX have warned of slim chances for full recovery of customer assets. The restructuring process is seen as essential for any potential recovery, although the partial return of funds hinges on the market's performance and successful restructuring. The incident has raised concerns about the security and regulatory oversight of cryptocurrency exchanges in India.
