Cryptocurrency users affected by the WazirX hacking incident of 2024 have a vital choice to make. From March 19 to March 28, they can vote on a restructuring plan aimed at recovering their stolen assets. This plan comes after a staggering loss of $234.9 million (around ₹2,000 crore) last year.
Experts are urging users to support the restructuring scheme. They believe it offers the best chance for recovery compared to liquidation, the only alternative. If users vote “yes,” WazirX will refund approximately 85% of stolen assets using liquid assets and provide recovery tokens for the remaining amount.
The stakes are high. If the vote fails, liquidation will follow, resulting in lower recoveries. Sidharth Sogani Jain, founder of Crebaco, emphasizes the challenges facing users. They will incur losses, whether in time or asset valuation. He highlights a critical issue: “The hacked wallet was in Ethereum, but users holding Bitcoin may demand its equivalent value. This creates further complications if the vote goes against restructuring.”
Jain also points out that a liquidation would benefit WazirX financially. If the vote fails, crypto assets will be valued at the time of the hack, not reflecting the 35-40% price increase since then. This means users could miss out on potential gains.
Snigdhaneel Satpathy, a partner at Saraf and Partners, echoes the call to vote “yes.” He notes that a successful recovery not only returns lost funds but also opens the door for profit-sharing in the future. “The liquidation is you essentially stripping down the company of all its assets,” he says. While he acknowledges that users may not achieve 100% satisfaction, he insists that the restructuring offers some control over the outcome.
Nischal Shetty, founder of WazirX, shared that if the restructuring goes through, users will receive liquid and recovery tokens within 10 days of the plan’s approval, redeemable over the next three years. He believes this could be one of the fastest resolutions in crypto history, especially compared to other exchanges that take 3-5 years to recover funds.
As discussions about regulation intensify, Satpathy emphasizes the need for users to check a company’s credibility. He advocates for a self-regulatory body to establish advertising standards, allowing investors to make informed decisions. Jain agrees, stating, “Without a regulator in place, all exchanges are prone to extreme risks.”
The clock is ticking for WazirX users. They must weigh their options carefully as they decide the future of their investment.
Source: The Hindu Business Line
