WazirX Launches Initiatives for Creditor Fund Recovery After Major Security Breach

• WazirX resumes trading, allocating generated fees to creditors, aiming to drive volume and aid fund recovery.
• New revenue streams include a DEX, staking, and OTC desk, providing diverse options for sustained creditor benefits.
• Legal efforts to recover stolen assets and “White Knight” partnerships aim to maximize returns for affected WazirX creditors.

After the major hack in July, WazirX, one of India’s leading cryptocurrency exchanges, has introduced new measures aimed at recovering funds for its creditors. The hack led to over $230 million in assets lost, which were later converted into Ethereum. 

In response, WazirX has unveiled a series of recovery efforts, including reopening trading and exploring new revenue streams, as well as pursuing legal channels to reclaim assets. These actions reflect WazirX’s ongoing commitment to stabilizing its platform and maximizing creditor returns.

WazirX to Resume Trading and Generate Revenue for Creditors

WazirX plans to restart trading operations on its platform, giving users the ability to trade once again. This reopening is expected to drive trading volumes, with fees generated during this period allocated to creditors as part of the recovery plan. 

This approach, aiming to balance platform operations with creditor benefits, signifies WazirX’s proactive steps toward addressing the financial setbacks stemming from the hack. WazirX is also working on new products and features to create sustainable revenue streams, further contributing to creditor recovery efforts.

New Revenue Streams

To diversify its revenue, WazirX is developing a decentralized exchange (DEX) that merges the ease of centralized exchanges with self-custody. This DEX will include security-focused design, extensive testing, and user incentives for liquidity. Additionally, a native DEX token and recovery token swaps will be introduced, expanding potential creditor benefits.

Alongside the DEX, WazirX is launching crypto staking services, allowing users to earn rewards by supporting blockchain networks. Users can stake their tokens directly or through a pool, with rewards allocated proportionally. This offers a lower-risk alternative to traditional lending. 

Furthermore, WazirX is setting up an OTC desk to cater to high-net-worth clients, providing a private and stable option for substantial crypto transactions. Lastly, futures trading will soon be available, enabling users to speculate on crypto prices with leverage, offering added trading flexibility.

Asset Recovery and Strategic Partnerships

WazirX continues its legal efforts to recover illiquid and stolen assets, ensuring these are secured to benefit creditors. The company has engaged in tracking these assets, aiming to prevent unauthorized access while maximizing returns. 

Additionally, WazirX is exploring partnerships with potential “White Knights,” which could bring rescue financing and strategic collaboration, further supporting creditor recovery. With these initiatives, WazirX aims to build a path forward, relying on both new revenue streams and strategic asset recovery.