WazirX, one of India’s largest cryptocurrency exchanges, was hit by a devastating hack in July 2024, leading to a loss of approximately $235 million. Since then, the platform has paused its services, focusing on a comprehensive recovery plan aimed at compensating its affected users. The exchange is now working to reopen, with hopes of restoring customer funds under a court order in Singapore.
Recovery Efforts and Decentralized Exchange (DEX) Plans
In a recent update posted on X, WazirX revealed plans to relaunch its exchange and introduce a decentralized exchange (DEX) platform once the court-approved recovery plan is finalized. The initiative forms part of a broader strategy to rebuild and regain user trust following the hack. This announcement comes after CEO Nischal Shetty hinted at the possibility of a DEX launch in November 2024, suggesting that it could generate new revenue streams to help repay the hacked users.
We are gearing up for a fresh start with enhanced services and a recovery-driven approach for Scheme Creditors.
— WazirX: India Ka Bitcoin Exchange (@WazirXIndia) December 18, 2024
Following Scheme approval (subject to legal and regulatory requirements), we plan to reopen the WazirX platform and launch a decentralized exchange (DEX) with… pic.twitter.com/F7MObirmfF
However, the DEX proposition has faced strong resistance from the crypto community. Many users have expressed dissatisfaction with the exchange’s priorities, demanding that WazirX focus on compensating affected customers before launching any new products.
Shardeum DEX: Three Years in Development
The idea of launching a DEX is not new for WazirX. The platform had initially introduced the concept in December 2021 under the name Shardeum, with the intention of offering a decentralized trading solution. Despite being under development for over three years, the DEX has yet to launch, raising questions about the platform’s readiness to follow through on its promises.
Controversy Surrounding WazirX’s Recovery Process
WazirX’s recovery efforts have not been without controversy. The exchange has been accused of poor communication and questionable practices, including allegedly manipulating customers into agreeing to changes and shifting funds overseas. There have also been accusations that WazirX has blamed Binance for delays in the reimbursement process, further fueling distrust among users.
Despite these challenges, WazirX insists that it is on the brink of finalizing a reimbursement plan, awaiting final approval from the Singapore court. As the exchange moves forward with its recovery efforts, the community remains divided, with many calling for more transparency and accountability.
Also Read: WazirX Secures 4-Month Moratorium After $234M Hack – Will Users See Recovery?
As WazirX navigates its path to recovery, the crypto world will be watching closely, particularly to see how it manages to rebuild user confidence and handle the fallout from one of the biggest hacks in the industry’s history.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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