In the aftermath of the $230 million hack on July 18, Indian crypto exchange WazirX has announced a series of comprehensive recovery initiatives aimed at helping affected creditors. Detailed in a post on X (formerly Twitter) on November 6, the exchange outlined four major strategies to maximize fund recovery. In addition, the crypto exchange also announced plans for a substantial Recovery Token airdrop.
WazirX Announces Key Initiatives for Maximum Fund Recovery
The first initiative will see WazirX reopen its platform for trading. According to the company, this move is intended to revitalize trading volumes and generate fees that will benefit creditors directly. “We will reopen the WazirX platform, allowing users to resume trading and potentially driving up trading volumes. Fees generated during this period will be shared with Creditors, creating a stream of recovery for them,” the exchange stated in a post on X.
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📢 Initiatives to maximize fund recovery for Creditors:
1️⃣ Restart trading on the WazirX platform
We will reopen the WazirX platform, allowing users to resume trading and potentially driving up trading volumes. Fees generated during this period will be shared with… pic.twitter.com/PWhi4zIxUl
— WazirX: India Ka Bitcoin Exchange (@WazirXIndia) November 6, 2024
This approach is expected to not only bring liquidity back to the platform but also establish a source of revenue that can be redistributed to creditors. In addition to trading, WazirX plans to diversify revenue streams by introducing new products and services. These include a decentralized exchange (DEX), staking options, an over-the-counter (OTC) desk, and futures trading.
The company noted that the DEX will aim to merge “the user-friendly experience of centralized exchanges with the security of self-custody,” creating a system that emphasizes both accessibility and security. The DEX will feature an intuitive interface and reward users who provide liquidity, fostering a smooth trading experience. Plans also include a native DEX token and Recovery Token swaps, which will further benefit creditors.
The new staking feature is designed to give users an opportunity to earn rewards through blockchain network support. “Users would be able to deposit tokens into our staking pool or directly use staking smart contracts across multiple blockchains,” WazirX explained. Staking rewards will be allocated based on investment, with a nominal fee applied, providing an alternative to traditional lending with reduced counterparty risks.
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The OTC Desk and futures trading services cater specifically to more advanced and institutional traders. The OTC Desk is tailored for large-scale transactions, ensuring privacy, price stability, and personalized support for both business and individual clients.
The company added, “Revenue will be generated through commissions or spreads on each trade, making it a tailored and secure option for significant crypto deals.” Meanwhile, the futures trading feature will allow users to speculate on future price movements with leverage, providing an opportunity for traders to capitalize on market dynamics.
Fund Recovery Efforts
WazirX also announced ongoing efforts to reclaim illiquid and stolen assets. Through legal channels, the exchange aims to recover lost assets and prevent unauthorized withdrawals. “We will continue to pursue legal actions to reclaim illiquid and stolen assets actively, ensuring they are secured for Creditors’ benefit,” WazirX shared. By tracking these assets, the exchange hopes to recover additional funds for creditors.
The final component of WazirX’s recovery plan involves exploring “White Knight” proposals—partnerships with potential investors who could offer rescue financing and strategic support. This approach could inject additional funds into the recovery process and strengthen the exchange’s ability to compensate creditors.
Complementing these initiatives is the planned launch of a Recovery Token, which will be airdropped to creditors proportionate to their platform balances. The token aims to provide a “path to recovery” through multiple channels. It includes future platform profits, new business ventures, recovered assets, and potential contributions from White Knights.
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According to WazirX, “Key use cases of the Recovery Token include buybacks to boost creditor recoveries and additional liquidity options, enabling tokens to be traded in the open market for early access to funds.” More information on the Recovery Token and its applications is expected soon, as the exchange is currently navigating the complex process of asset recovery.
Also Read: WazirX Announces Rebalancing Calculator Amid Restructuring Efforts
