Title: WazirX Proposes Scheme to Recover ₹1,965-cr Lost in Cyberattack
WazirX, a popular cryptocurrency exchange, has proposed a Scheme of Arrangement to recover the staggering ₹1,965 crore (approximately $234 million) it lost in a cyberattack last year. The scheme, filed with the Singapore High Court, aims to refund around 85% of the stolen assets using existing liquid assets and provide recovery tokens for the balance amount.
As reported by Moneycontrol, creditors have backed WazirX’s restructuring scheme, paving the way for the exchange to recover a significant portion of the stolen funds. The cyberattack, which occurred in March 2022, saw hackers make off with a substantial amount of cryptocurrency, leaving WazirX’s parent company, Zettai Pte, reeling.
The proposed Scheme of Arrangement is a complex and multi-step process that involves the allocation of assets, the distribution of recovery tokens, and the satisfaction of creditor claims. Under the scheme, WazirX will utilize its existing liquid assets to refund around 85% of the stolen assets to creditors. The remaining 15% will be covered by the issuance of recovery tokens, which will be distributed to creditors.
The recovery tokens will be linked to the value of the stolen assets and will be redeemable once the stolen funds are recovered. This innovative approach is expected to incentivize creditors to support the restructuring scheme, as they will have a direct stake in the recovery of the stolen assets.
The Scheme of Arrangement has been filed with the Singapore High Court, which will review and approve the plan. If approved, the scheme will provide a legal framework for WazirX to recover the stolen funds and restore confidence in the exchange.
The cyberattack on WazirX was a significant blow to the cryptocurrency industry, highlighting the importance of robust security measures and contingency planning. The incident also raised concerns about the vulnerability of cryptocurrency exchanges to cyber threats and the need for increased vigilance and cooperation among industry stakeholders.
The proposed Scheme of Arrangement is a testament to WazirX’s commitment to recovering the stolen funds and making amends with its creditors. The exchange has taken a proactive approach to addressing the issue and has worked closely with creditors and legal experts to develop a comprehensive plan for recovery.
The success of the scheme will have far-reaching implications for the cryptocurrency industry, setting a precedent for the recovery of stolen assets and restoring investor confidence in the sector. It will also provide a roadmap for other exchanges and industry players to follow in the event of a similar incident.
In conclusion, WazirX’s proposed Scheme of Arrangement is a significant step towards recovering the staggering ₹1,965 crore lost in the cyberattack. The scheme offers a unique solution to the problem, utilizing existing liquid assets and recovery tokens to refund creditors. If approved, the scheme will provide a legal framework for WazirX to recover the stolen funds and restore confidence in the exchange.
