Date: Mon, Sept 02, 2024, 10:46 AM GMT
In a recent press conference, legal experts provided a grim update for WazirX customers hoping to recover their lost crypto assets following the devastating hack in July that saw $234 million disappear from the exchange. According to WazirX’s co-founder, Nischal Shetty, at least 43% of customer funds are unlikely to be recovered.
The hack, which impacted around 45% of customer funds, has left many users in a precarious financial situation. Despite efforts to manage the crisis, George Gwee, director of restructuring expert Kroll, warned that the best-case scenario would see customers recovering only 55% to 57% of their lost assets. The remaining funds might be forever out of reach.
The WazirX team has been working hard to mitigate the impact of the hack, but the road to recovery is challenging.
During the press conference, WazirX representatives avoided many questions about its efforts to shore up capital. The company said it’s holding talks with an unnamed white knight, but said the capital won’t be raised against equity because of an ongoing dispute with Binance, the world’s largest cryptocurrency exchange — Binance and WazirX have been closely linked at some point.
While the WazirX team promises to explore every avenue to close the funding gap, the harsh reality is that a full recovery of losses seems increasingly unlikely.