Impact

Change

WazirX

<p style="text-align: justify">You can also read this news on BH NEWS: <a href="https://en.bitcoinhaber.net/wazirx-faces-hurdles-in-compensating-customers-post-hack" data-wpel-link="internal" rel="noopener noreferrer nofollow">WazirX Faces Hurdles in Compensating Customers Post Hack</a><br></p>
<p style="text-align: justify">India-based cryptocurrency exchange WazirX has announced that customers will not fully recover their losses following a major <a href="https://newslinker.co/what-is-cybersecurity/" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="exclude">hack</a> in July, which resulted in a theft of $234 million. Legal advisors for the exchange revealed significant challenges in compensating affected users. The Singapore High Court is set to review WazirX’s request for a six-month protection period to manage its liabilities.</p>
<h2 id="potential-recovery-for-customers">Potential Recovery for Customers?</h2>
<p style="text-align: justify">WazirX’s legal advisors indicated that customers are likely to face a minimum loss of 43%, with the best-case scenario allowing them to recover only 55-57% of their funds. George Gwee, a restructuring director at Kroll, noted that the hack caused a loss equivalent to approximately 45% of customer funds.</p>
<p style="text-align: justify">Nischal Shetty, co-founder of WazirX, explained that the current figures are tentative and the team is working to reduce the gap. He emphasized ongoing negotiations and idea development aimed at improving the recovery rate over the coming weeks.</p>
<h2 id="what-could-change-the-situation">What Could Change the Situation?</h2>
<p style="text-align: justify">Jason Kardachi, managing director at Kroll, suggested that interventions such as a ‘white knight’ investor or successful fund recovery could alter the situation. However, he cautioned that it is unlikely to fully recover the hacked cryptocurrencies, considering that half or close to half of the lost assets are irretrievable.</p>
<p style="text-align: justify">Kardachi also mentioned that a recovery in the cryptocurrency market might allow customers to regain more of their <a href="https://finance.coin-turk.com/" rel="noopener noreferrer nofollow" target="_blank" data-wpel-link="exclude">investments</a> in USD terms. Nevertheless, the probability of achieving significant profitability or cash flows from third-party contributions remains low.</p>
<h2 id="actionable-insights-for-wazirx-users">Actionable Insights for WazirX Users</h2>
<p style="text-align: justify">Considering the current situation, WazirX users should:</p>
<ul>
 <li>Keep abreast of updates from WazirX regarding recovery efforts and legal proceedings.</li>
 <li>Explore diversification of investments to mitigate risks in case of future security breaches.</li>
 <li>Consult with financial advisors to understand potential impacts on their portfolios.</li>
 <li>Consider using additional security measures for their cryptocurrency holdings.</li>
</ul>
<h2 id="impact-of-binance-dispute-on-calculations">Impact of Binance Dispute on Calculations</h2>
<p style="text-align: justify">The ownership dispute between WazirX and <a href="https://en.bitcoinhaber.net/binance-enhances-trading-capabilities-with-addition-of-new-tokens-and-pairs" data-wpel-link="internal" rel="noopener noreferrer nofollow">Binance</a> is also affecting the recovery calculations. Both Shetty and the legal advisors cited confidentiality restrictions, preventing them from providing detailed information. Kardachi noted that 55% of the funds could be returned to customers even before the ownership dispute resolution.</p>
<p style="text-align: justify">WazirX’s subsidiary, Zanmai India, has sought a six-month protection period from the Singapore High Court to restructure its liabilities in the wake of the hack. The court’s decision on this request is expected on Tuesday.</p>
<h5><span style="font-weight:bold;font-size:16px">The post first appeared on BH NEWS: </span> <a href="https://en.bitcoinhaber.net/wazirx-faces-hurdles-in-compensating-customers-post-hack" data-wpel-link="internal" rel="noopener noreferrer nofollow">WazirX Faces Hurdles in Compensating Customers Post Hack</a></h5>

WazirX Faces Hurdles in Compensating Customers Post Hack

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