WazirX Recovery Token Launched for Outstanding Debt Repayment

Key Points:

• WazirX is launching a recovery token for creditors aimed at addressing unpaid debts and recovering assets through methods.
• The WazirX recovery token provides liquidity for creditors by allowing them to trade it on the public market.

The Indian cryptocurrency exchange WazirX has announced the issue of a recovery token to cope with the unpaid debts after a critical security breach took place.

Read more: WazirX Hacker Address Moves $6.5M Stolen Crypto To Tornado

WazirX Recovery Token Was Introduced to Address Unpaid Debts

The WazirX recovery token shall be airdropped to the creditors in accordance with the ratio of their platform balance. Recovery for WazirX is proposed based on different strategies, including future platform profits, new business opportunities, nonliquid asset realization, recovery of stolen assets, and contributions from White Knight proposals—third-party investors who are willing to step in and assist in the exchange’s financial recovery.

The token combines two high-impact benefits: a buyback option to extend creditor recoveries via market opportunities and additional liquidity from the fact that the token itself can be traded openly, thereby sometimes making access to funds for creditors easier and quicker.

Legal Pressure Mounts on WazirX Following $230 Million Hack

The launch of the WazirX recovery token comes after the exchange suffered a hacking incident in July this year, which saw it lose in excess of $230 million. Following the breach, the exchange allowed customers to withdraw some of their holdings. In September, WazirX allowed customers to withdraw 55% of their cryptocurrency holdings and 66% of cash deposits.

All these efforts notwithstanding, many users seem unhappy with the way the exchange has handled the situation. There are even accusations that WazirX is trying to shrug off the responsibility of recovering the siphoned money and not take complete responsibility for the hack. To this end, legal memos have been sent with the aim of pushing the company to provide a clear roadmap for customers to be able to make complete withdrawals in kind.