$230 million hack: WazirX launches creditor tools to enhance creditor transparency; here's what it means

Cyberattack-hit crypto exchange WazirX has introduced two key features -- a new claim tracker and wallet migration update -- within its app to enhance transparency and assist creditors as part of its efforts to recover funds lost in the theft of digital assets exceeding $230 million on July 18, 2024. "We have published the Preliminary Creditor List and the 18th July Page inside the WazirX app to provide complete transparency in the restructuring process," says WazirX.

The Preliminary Creditor List will allow creditors to check their claim amount in USD using a unique Universally Unique Identifier (UUID). The customers can also check their balance. "The list is ordered by descending value of claims and can be searched using the UUID. A ‘Find My Balance’ option is also available for easy access," the company says.

In WazirX's restructuring process, creditors can review another creditor’s claim by submitting an inspection request. Its Preliminary Creditors List displays all creditors' UUIDs instead of personally identifying information.

In another update on the 18th of July Page, WaizrX says creditors can now view a snapshot of their balances as of July 18, 2024, 1 PM IST, including token balances and deposits made after this date. "A link to this page has been added to the fund's section and the app home page. These updates ensure all creditors have visibility into their claims and are in line with the Scheme Process," says the company.

WazirX has said users will be able to receive stolen crypto funds as early as April 2025, provided they approve the restructuring and scheme. However, if the scheme is not approved, the company estimates it could take years (with a tentative deadline of 2030) due to unclear and extended timelines. "Two paths, two very different outcomes. Here's a breakdown of what happens if the scheme is approved versus if it isn't. Understand what to expect in both scenarios as we approach the voting process," the company said in a statement on X. Sources indicate that creditors will soon vote on the restructuring plan, with the exact date to be announced in the coming days.

WazirX suffered a massive cyberattack in July 2024, resulting in the theft of around $230 million in digital assets. Hackers exploited vulnerabilities in the multi-sig wallet, leading to the suspension of its operations and the halting of trading and withdrawals in the same month. WazirX has attributed responsibility for the $230 million hack to the North Korean Lazarus Group, which is infamous for high-profile cyberattacks on cryptocurrency exchanges. The United States, Japan, and South Korea, in a joint statement, also identified the Lazarus Group as responsible for the cyberattack on the exchange.

The crypto exchange stated that if creditors approve its restructuring plan, and it is further sanctioned by the Singapore court, the platform will resume operations, and asset distribution to creditors will begin with the implementation of new business (DEX). With this plan, the company aims to improve recoveries via profit sharing, recovery of illiquid wallets and stolen assets, and "white knight" collaborations.

If the restructuring plan is not approved, creditors will have to wait for the ownership dispute to be resolved before any next steps can be taken, which makes the situation unclear and could lead to extended timelines, estimated by the year 2030.