WazirX customers may not recover full funds after hack; here’s what the company’s legal advisor said – Times of India

A legal adviser working for WazirX has reportedly suggested that customers who were affected by the recent hacking incident on the cryptocurrency exchange are unlikely to recover their funds in full. During the ongoing restructuring process, George Gwee, a director at restructuring firm Kroll working with WazirX estimated that at least 43% of customer funds are lost.Last week, the domestic crypto platform sought a six-month protection period from the Singapore High Court to restructure its liabilities following the $234 million (nearly Rs 1963 crore) hack in July.

What the legal advisor said

In a press conference (reported by TechCrunch), Gwee said that at best “anywhere between 55% and 57% of the funds” can be recovered.
For the restructuring, WazirX is mainly focusing on distributing the remaining token assets to users on a pro-rata basis through cryptocurrency.
The company is also in talks to share profits from its revenue-generating products, but it did not provide specific details, the report added.

WazirX’s ongoing legal battles with other crypto platforms

WazirX’s hack was the largest cryptocurrency theft in the country’s history. Since the incident, the company has been trying to recover the stolen amount and even proposed to socialise the lost funds. However, despite efforts the company faces significant challenges.
The crypto platform has been exploring various options, including potential capital injections from an unnamed investor. However, the ongoing dispute with world’s largest crypto platform Binance has complicated these efforts.
In 2019, Binance announced that it had acquired WazirX, but later denied the acquisition. Following a public disagreement, the cryptocurrency exchange ended its tech support to the Indian firm in 2022.
The company also recently faced legal action from CoinSwitch, another Indian crypto exchange, which sued WazirX last week to recover around $9.7 million worth of assets stuck on the latter platform.