WazirX completes asset rebalancing process, now awaits majority votes to start token distribution

The exchange said that the distribution process would start within 10 business days of the scheme being effective, which the platform claimed would be the fastest recovery in the history of the industry.

Hacked crypto exchange WazirX on February 10 announced that it has concluded its asset rebalancing process, and now will be able to make tokens covering approximately 85 percent of creditors balances available once its restructuring scheme gets majority user votes.

To be sure, the creditors balances will be valued as of July 18, 2024 at 1 PM IST, the day of the $230-million crypto asset theft. The cyberattack was recently linked to the state sponsored hacker organisation Lazarus Group of North Korea.

The exchange said that the distribution process would start within 10 business days of the scheme being effective, which the platform claimed would be the fastest recovery in the history of the industry.

Nischal Shetty, Founder of WazirX said, "We are grateful to have reached this critical milestone. Completing the rebalancing process and preparing for distribution demonstrates Zettai’s deep commitment to protecting creditor interests and restoring the trust placed in the Platform. By targeting one of the fastest distribution timelines in the crypto industry, we hope to set a precedent for accountability, efficiency, and resilience in times of crisis."

The exchange expects the subsequent distributions to happen over the next three years as “more assets are realized from Illiquid Asset recoveries, including the Stolen Tokens, as well as from available shared profits generated through future operations.”

As part of the efforts in recovering the stolen assets, WazirX had earlier said that it had managed to freeze the first tranche of stolen assets, amounting to approximately USDT 3 million.

“Along with partnering with law enforcement agencies and investigating authorities, we have engaged a leading blockchain forensics firm zeroShadow to trace and recover the stolen funds, and we are hopeful in our continued efforts to recover the Stolen Assets,” the exchange said in its statement.

Jason Kardachi, Managing Director and Co-Head of Kroll’s global restructuring practice said, "The successful completion of the Rebalancing process underscores the importance of careful planning, collaboration, and a dedication to fairness. Aligning value of assets with liabilitiesin a volatile crypto market over nearly 350 tokens, many with challenging liquidity profiles, is no small feat, but the approach has maximized transparency and precision throughout.”