Indian cryptocurrency exchange WazirX has received the go-ahead from the Singapore High Court to implement a user compensation plan following a devastating $235 million hack in July 2024. The attack, attributed to North Korea’s notorious Lazarus Group, left thousands of users reeling.
Under the approved plan, WazirX’s parent company, Zettai, will roll out a two-phase compensation strategy. Users will receive immediate payouts within 10 days of the plan’s activation, while the remaining balances will be covered through recovery tokens. These tokens, tied to the platform’s future profits and recovered assets, aim to reimburse users for up to 80% of their losses over time.
The plan is subject to user approval, with voting set to conclude in the next three months.
Meanwhile, WazirX is actively collaborating with authorities in the U.S., Japan, and South Korea to recover additional stolen funds. The exchange has already frozen $3 million in USDT linked to the attackers and is pursuing further recovery efforts.
This court-supervised plan not only helps WazirX avoid liquidation but also marks a significant step toward restoring user trust and stabilizing operations. By combining immediate relief with long-term recovery measures, WazirX aims to rebuild its reputation and strengthen its position in the crypto industry.
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