WazirX, an Indian cryptocurrency exchange, disclosed on Monday that there is little chance of recovering 43% of the customer assets that were lost in a recent cyberattack. The exchange declared during a virtual press conference that it is going through a restructuring process that might take up to six months. They are also in talks to explore collaborations and get funds from a possible investor.
The restructuring proposal was negotiated by WazirX co-founder Nischal Shetty, Managing Director Jason Kardachi, and Director of Restructuring George Gwee at Kroll. According to Kardachi, “the net cost required to undertake this restructure is approximately 55–57 percent.” This is what people can get back in cryptocurrency as a result of this restructure.
The reorganization will prioritize generating fresh sources of income, locating taken assets, and facilitating speedy withdrawals for consumers in urgent need of their money. The business said that “this would allow users who are willing to stay in the restructuring to receive higher recoveries.”
Over $230 million was lost in the incident, which WazirX announced on July 18. The wallet in question was a multisignature wallet. According to WazirX, Liminal’s digital asset custody and wallet technology were used to operate the wallet.
The assault was caused by “a difference between the data displayed on Liminal’s website and the transaction’s actual contents,” according to the company’s initial investigation. The attack is believed to have been executed by the Lazarus Group, a well-known cybercrime group purportedly supported by North Korea.
Representatives of WazirX did not respond clearly when questioned about possible legal action against Binance and Liminal, whose systems were reportedly infiltrated.
The company chose to reveal that it is in talks with a white knight investor and made it clear that the funds will not be raised against equity because of a continuing conflict with Binance, the biggest cryptocurrency exchange in the world.
WazirX is under increasing pressure as CoinSwitch, a significant Indian cryptocurrency exchange, filed a lawsuit last week to reclaim money valued at about $9.7 million that had become stranded on the site.
Also read: DORA (Digital Operational Resilience Act) Batch 2 Changes and Expectations from BFSI sector
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