• WazirX’s restructuring plan promises to return 75-80% of stolen funds.
• A three-month voting period has sparked frustration among victims.

The recent decision by the Singapore High Court approving WazirX’s restructuring plan has sparked debate among the crypto community. After the devastating $234 million hack in July 2024 by North Korea’s Lazarus Group, the exchange now promises to return 75% to 80% of lost funds. While this appears to be a step forward, the decision leaves unresolved questions about transparency and justice.

Court Approval: A Step Forward, But At What Cost?

On the surface, the court’s ruling seems fair. It allows WazirX to avoid liquidation while prioritizing creditor recovery. The introduction of recovery tokens, which grant affected users a share in the exchange’s future profits and recovered assets, offers a creative solution. Additionally, WazirX has already frozen $3 million in USDT and is cooperating with international authorities to trace more stolen funds.

However, many victims remain unsatisfied. Their skepticism stems from the drawn-out three-month voting process, which they deem unnecessarily long. Time is of the essence for those who lost their life savings in the attack. A quicker timeline would inspire confidence and alleviate financial stress. The recovery process, though structured, risks alienating users who feel ignored.

A Cloud of Doubt Over WazirX’s Role

Moreover, WazirX’s portrayal as a victim-free from misconduct raises concerns. Although the court found no evidence of wrongdoing, many users suspect corporate negligence contributed to the vulnerability exploited by the Lazarus Group. Trust, once broken, requires transparency and accountability to be restored.

There’s no denying that WazirX’s recovery tokens set a precedent in the crypto industry. They offer users a stake in the exchange’s recovery, potentially turning victims into stakeholders. Yet this solution places the burden of recovery on users rather than the platform itself. Is that fair in a scenario where customers have already lost so much?

The legal victory for WazirX does not obscure the underlying challenges. Cybersecurity remains a persistent threat in the crypto world, and exchanges must bolster their defenses.

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