Crypto exchange WazirX has taken a major step toward recovering from last year’s devastating security breach by completing its asset rebalancing process. The breach, which occurred on July 18, 2024, led to losses exceeding $230 million, shaking investor confidence. Now, WazirX is turning to its users for approval of a distribution scheme aimed at compensating affected investors.
What’s Next for WazirX Users?
WazirX has proposed a redistribution plan that would return approximately 85% of user balances, calculated based on values from the day of the breach. However, for this to move forward, a majority of users must vote in favor of the scheme. If approved, the distribution will be made in the form of tokens, marking a crucial step in restoring trust and stability.
A Long-Term Recovery Plan
Beyond this initial distribution, WazirX has outlined a three-year recovery strategy to continue compensating affected users. This will be funded by:
- The recovery of illiquid assets, including the stolen tokens.
- Profits generated from future operations.
To assist with this effort, WazirX has partnered with leading blockchain forensics firm zeroShadow, which specializes in tracking stolen assets. So far, the exchange has managed to freeze approximately $3 million in stolen funds, signaling progress in its efforts to reclaim lost assets.
WazirX’s Commitment to Users
Speaking about the developments, WazirX founder Nischal Shetty emphasized the company’s dedication to its users.
“Completing the rebalancing process and preparing for distribution demonstrates our deep commitment to protecting creditor interests and restoring the trust placed in the platform. By targeting one of the fastest distribution timelines in the crypto industry, we hope to set a precedent for accountability, efficiency, and resilience in times of crisis,” he stated.
Final Thoughts
While this marks a significant milestone in WazirX’s recovery journey, the ultimate outcome depends on user participation in the voting process. If approved, the distribution scheme could serve as an important precedent for how crypto exchanges handle security breaches and user compensation.
For now, all eyes are on WazirX users, as their decision will determine the next chapter in the exchange’s recovery efforts.
