WazirX's 2024 Hack: Users Outraged by Restructuring Plan
1min read WazirX, once a leading cryptocurrency exchange in India, is back in the spotlight following a 2024 hack that resulted in significant customer fund losses. The exchange is now proposing a restructuring plan that has sparked outrage among users.
In a recent X post, WazirX outlined two scenarios depending on whether the community supports its proposal. The exchange is essentially offering users two options: back the creation of a new decentralized exchange (DEX) or face an extended wait of up to five years to recover their funds. The post emphasized that rejecting the DEX route would not provide a clear timeline for fund recovery, and any refund would likely be in fiat and take significantly longer than the restructuring process.
If creditors opt for restructuring, WazirX plans to build its own DEX. However, the exact launch date remains unclear. The DEX plan has a concrete date of April 2025, when WazirX expects a Singapore court to decide whether to approve it, assuming creditors back the proposal. Despite the visual framing of restructuring as the better option, there's still no clear timeline for when hack victims will actually get their funds back. WazirX promises to share future DEX profits with creditors, but details on the percentage, frequency, and compensation process remain unclear.
A spokesperson for WazirX told crypto.news that if the majority of voters choose to 'Vote Yes' for the Scheme, the first round of fund distribution of approximately 80-85% will happen in 10 business days. All distributions will happen on a pro-rata basis, and recovery tokens will be issued based on the value of each user's claim. In the next 36 months, the platform's profits will be used to compensate users for the remaining funds.
The crypto community has been critical of the proposed scheme, with some calling it an "absolute joke" and urging WazirX's executive team to sell their assets to return customer funds as soon as possible.
Founded in 2018, WazirX was once one of India's largest crypto exchanges by trading volume. In December 2021, it reported an annual trading volume of over $43 billion, a 1,735% increase from 2020. However, in July 2024, WazirX lost over 
