4 september 2024 : Crypto Market News: On September 4, 2024: Last month, the Indian crypto exchange WazirX faced a major cyber attack, and hackers stole approximately ₹1,923 crore worth of crypto assets. Now, WazirX’s parent company, Zettai Pte, has admitted that customers affected by the cyber attack will not be able to recover their full amounts.
Customers will only be able to withdraw up to 55% of their funds. The company is in discussions with white knights for capital support to be able to return customer funds.
The company stated in a virtual conference that the reorganization of its crypto balances will take at least six months. It filed for reorganization in a Singapore court on August 23, which imposes a six-month moratorium on any legal actions.
The Singapore court will seek creditors’ opinions on whether the moratorium should be granted. WazirX’s spokesperson mentioned that supporting the moratorium is in the best interest of all creditors, and they are urging creditors to show their support.
Under the reorganization, WazirX plans to distribute the remaining token assets to customers proportionally in crypto, rather than in fiat currency. The spokesperson also noted that approximately 45% of the available funds will be required for reorganization costs, leaving only 55% to be returned to customers.
In addition to recovering the stolen cryptocurrencies, the company is exploring ways to generate additional funds through financial products and strategies to share profits with users.
It should be noted that the cyber attack on WazirX on July 18, 2024, resulted in the theft of $230 million (approximately ₹1,923 crore) worth of crypto assets.