WazirX Customers Face Uncertain Future Amid Major Hack and Restructuring

WazirX Customers Face Uncertain Future Following Major Hack

It appears increasingly unlikely that customers of WazirX will receive full compensation in cryptocurrency terms as the exchange navigates its restructuring process, according to legal advisers associated with the hacked Indian cryptocurrency platform. During a recent conference call, which featured WazirX co-founder Nischal Shetty, the advisers provided a sobering outlook on the situation.

According to George Gwee, a director at the restructuring firm Kroll, it is estimated that at least 43% of the funds that customers had deposited with WazirX may not be recoverable. In a more optimistic scenario, customers could potentially see a return of between 55% and 57% of their total funds.

On Tuesday, the Singapore High Court is set to deliberate on WazirX’s appeal for a six-month protection period that would allow the exchange to restructure its liabilities. This request was filed by Zettai Pte, a Singapore-incorporated entity, with its subsidiary Zanmai India managing the operations of the exchange. In light of the fact that the hack resulted in a loss of $234 million, which accounted for approximately 45% of the customer funds, WazirX has previously indicated that it may only be able to restore access to the remaining 55% of customer assets.