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

Odaily reports that the Indian cryptocurrency exchange WazirX, which was hacked in July 2024, is facing strict 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 a Recovery Token (RT), which Shetty believes can help users recoup their losses. However, the community remains skeptical about the feasibility of the proposal. Shetty announced that users can now access their rebalanced portfolios, which is the first step of the allocation process. These portfolios will reflect the assets users held before the hack, and these amounts will be the first to be distributed upon the platform's relaunch. However, the plan requires the approval of WazirX's creditors to proceed. If the court approves the proposal, the exchange will resume operations, and the stolen assets will be returned through profit-sharing, asset recovery, and the introduction of a DEX. As part of the fund distribution, WazirX plans to issue RT tokens as compensation for users who did not receive full reimbursement. While users will initially receive 51-55% of their pre-hack holdings, the remaining portion will be compensated through RT tokens, which Shetty says will be tied to the total value of the stolen assets. (CCN)