WazirX plans to issue recovery tokens to compensate users for losses, but the community is skeptical

Odaily News WazirX, the Indian cryptocurrency exchange that was hacked in July 2024, is facing intense scrutiny as its CEO Nischal Shetty has proposed a recovery plan to compensate users for their lost assets. The key to the plan is the launch of the Recovery Token (RT), which Shetty believes can help users recover their losses. However, the community remains skeptical about the feasibility of the proposal.
Shetty announced that users can now access their rebalanced portfolio, which is the first step in the distribution process. The portfolio will reflect the assets held by users before the hack, and these amounts will be distributed first after the platform is restarted. However, the plan requires the approval of WazirX's creditors to go forward. If the court approves the proposal, the exchange will resume operations and the funds from the stolen assets will be returned through profit sharing, asset recovery, and the introduction of a DEX.
As part of the fund distribution, WazirX intends to issue RT as compensation for users who did not receive full compensation. While users will initially receive 51-55% of their pre-hacking holdings, the remainder will be compensated through RT tokens, which Shetty said will be pegged to the total value of the stolen assets. (CCN)