The notorious Lazarus Group from North Korea executed the hack on WazirX on July 18, 2024. WazirX was hit hard, along with previous strikes against other platforms, including a $54 million theft from CoinEx in September 2023. Thousands of users felt the impact of this cyber assault.
The major shift has taken place as the Singapore High Court approves WazirX’s plan to repay affected users. This decision, made on January 23, 2025, aims to return 75% to 80% of lost funds to customers, a crucial step in recovering from one of the largest cryptocurrency thefts in history.
WazirX’s approved plan avoids liquidation and focuses on repaying users. The exchange will issue recovery tokens, which not only document users’ losses but also grant them a stake in future profits and any recovered assets. This innovative approach includes a structured repayment plan that will be rolled out within 10 business days after voting.
The court ruling falls under Singapore’s Company’s Act of 1967, giving WazirX the legal backing it needs. The tokens serve as more than simple IOUs; they create a direct connection between the exchange’s recovery efforts and users’ compensation.
WazirX has already made strides in recovering funds, having successfully frozen $3 million in Tether (USDT). The exchange is collaborating with authorities in various countries, including the U.S., Japan, and South Korea, to track down more of the stolen funds.
Importantly, the court found no evidence that WazirX was complicit in the hack, allowing the exchange to focus on recovery. This clarity is essential for maintaining user trust during a difficult time.
The international aspect of the recovery is significant, with law enforcement agencies working together to track the stolen assets. The frozen $3 million in USDT marks a positive development, hinting at the possibility of recovering more funds.
WazirX’s structured repayment plan spans three years, allowing the exchange to generate profits for token repurchases while balancing operational needs. This model introduces a new way to handle cryptocurrency theft recovery, potentially setting a precedent for the entire industry.
This is a developing story…
