• Crypto & Funx
• 26 Dec, 2024

WazirX wants to restart operations early next year with new features to support revenue generation and user compensation.

A portion of the fees generated from new services will be directed toward buying back recovery tokens and reimbursing users.

WazirX is developing a DEX with a governance token to enhance user self-custody options, supporting liquidity and user engagement. .

y said that WazirX aims to restore the platform to resume trading by February 2025 with strategic recovery plans in place. The exchange plans to incorporate new features and services to generate revenue and facilitate payouts to affected users when the platform opens next year.

Recovery Efforts and New Features

These restructuring plans include the launch of “recovery tokens”, which would be airdropped to creditors to allow them to recover up to 48% of their lost assets. According to the YouTube video, when launched, the new digital assets will be distributed proportionally based on users’ holdings and tradeable on the platform.

Additionally, WazirX plans to introduce other services, such as crypto staking, an over-the-counter (OTC) trading desk, and futures trading opportunities for users. The company said that a portion of the revenues generated from trading fees from the new services will be allocated to supporting the buyback of recovery tokens. The move aims to bolster the exchange’s recovery fund and gradually reimburse users.

In response to user demand for greater self-custody options, WazirX said it is in the early stages of developing a decentralized exchange (DEX) that will complement its existing platform. According to the company, this new DEX will come equipped with a native governance token, allowing users to participate in the platform’s ecosystem by trading and earning rewards.

The revenue generated from the DEX will also contribute to victim payouts, with users being given the option to convert their recovery tokens into DEX tokens.

WazirX Looks to White Knights to Raise Funds

WazirX’s recovery plan extends beyond platform upgrades. The exchange is actively exploring partnerships with potential “white knight” investors to secure rescue financing to help with the payouts. Additionally, the exchange is pursuing legal measures to recover stolen assets.

The company said on X that it is committed to reclaiming illiquid and stolen funds for the benefit of its creditors. While users have so far been able to withdraw 55% of their crypto holdings and 66% of their fiat deposits, the remainder remains inaccessible.

Cybercriminals targeted the company in July 2024, over $235 million in customer funds from the platform. The incident exposed vulnerabilities in WazirX’s security, forcing the company to suspend operations and prompting a restructuring process based in Singapore, where its parent firm, Zettai, operates.

In September, a federal court in Singapore the exchange four months to develop a sound restructuring plan.

Despite the $235 million blow on the exchange, WazirX is facing other regulatory challenges from Indian authorities. The hack opened up the exchange for investigation by financial authorities in India. Reports indicate that the Financial Intelligence Unit (FIU) is looking into the exchange to determine the actual cause of the hack.

Additionally, a coalition of affected users has a class-action lawsuit against the company with the National Consumer Disputes Redressal Commission. The exchange is also facing two separate legal cases pending in the Delhi High Court.