WazirX has announced a comprehensive debt settlement plan following a debilitating cyberattack in July that left the cryptocurrency exchange struggling to pay creditors. The company revealed the details during its fourth townhall meeting on November 6, outlining how it plans to resolve 52% of creditor claims through existing liquid assets and the remainder through future initiatives.

Under a court-approved restructuring scheme, WazirX intends to distribute its $284 million in liquid assets on a pro-rata basis to creditors. A “rebalancing calculator” will be introduced to provide clarity on individual claims. For the remaining 48% of debts, the exchange will issue ‘Recovery Tokens,’ each valued at $1. These tokens can be encashed once the platform resumes operations and generates revenue.

Path to Recovery

WazirX plans to restart its trading platform to drive revenue through trading and withdrawal fees. The exchange anticipates a surge in activity during an expected cryptocurrency bull run, boosting trading volumes. CEO Nischal Shetty announced plans to launch a decentralized exchange (DEX) within a year. Unlike centralized platforms, a DEX enables direct peer-to-peer trading, ensuring greater security and reduced counterparty risks.

The upcoming DEX will feature a native token for paying exchange fees. A portion of the DEX’s revenue will go toward repaying Recovery Token holders. Shetty acknowledged the technical challenges of using a DEX but highlighted its safety benefits, including user-controlled custody of crypto assets.

To further strengthen its position, WazirX aims to monetize illiquid assets, recover stolen tokens, and seek white-knight investors for rescue financing.

New Features Launched

WazirX has introduced three key features to attract users and generate revenue:

1. Crypto Staking: Users can earn rewards by staking balances, with WazirX charging a fee.
2. OTC Desk: Facilitating large transactions with a commission model.
3. Futures Trading: Allowing speculation on cryptocurrency prices, with revenue from transaction fees and liquidating positions.

With these steps, WazirX seeks to rebuild trust and emerge as a robust player in the cryptocurrency market.