WazirX customers are unlikely to be made whole in crypto terms, the crypto exchange’s legal advisers said on Monday.
In terms of U.S. dollar recoveries, recovery is possible if the market improves.
On Tuesday, the Singapore High Court will hear WazirX’s request for six months’ protection while it restructures its liabilities after losing $234 million to a hack in July.
It is extremely unlikely WazirX customers will be made whole in crypto terms through the restructuring process, legal advisers to the hacked Indian cryptocurrency exchange said.
On a conference call with journalists that included WazirX co-founder Nischal Shetty on Monday, the advisers said under the current situation at least 43% of the money any customer had in WazirX is unlikely to be recovered.
The best case scenario is a return of anywhere between 55% and 57% of the funds, said George Gwee, a director at restructuring experts Kroll.
On Tuesday, the Singapore High Court will hear WazirX’s request for six months’ protection while it restructures its liabilities after losing $234 million to a hack in July. The request was made by Singapore-incorporated Zettai Pte, whose subsidiary Zanmai India operates the exchange.
Given the hacked amount was 45% of the customer funds, the company has previously indicated it will only able to give access to the remaining 55% of funds to its customers.
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