By Kapil Rajyaguru
Indian Crypto Exchange WazirX Charts Recovery Path After $235mn Cyberattack.
Indian cryptocurrency exchange WazirX, following a $235 million cyberattack by North Korea’s Lazarus Group in July 2024, has announced a restructuring plan to compensate affected users. The parent company, Zettai, filed for a moratorium under Singapore’s legal system in August, initiating a restructuring process via a Singapore Scheme of Arrangement.
This court-approved process allows WazirX to propose binding agreements with creditors while avoiding liquidation. By December 2024, WazirX reported liquid assets of $566.38 million, exceeding user claims of $546.47 million. To settle claims, the company is distributing recovery tokens, with users expected to recover 75 to 80% of their balances.
The company also plans to launch a decentralized exchange (DEX) to generate additional profits for further claim settlements. The goal of this restructuring is to reestablish user trust and provide value that surpasses the theft. Meanwhile, WazirX competitor CoinSwitch has launched a recovery fund for victims of the attack.
UK Order Clarifies Crypto Staking Is Not A Collective Investment Scheme.
The UK Treasury has amended a law to clarify that crypto staking—necessary for proof-of-stake blockchains such as Ethereum and Solana—doesn’t fall under the definition of a “collective investment scheme,” which is typically heavily regulated.
A Jan. 8 order from the department amends a section of The Financial Services and Markets Act 2000 about group investments, adding that “arrangements for qualifying crypto asset staking do not amount to a collective investment scheme [CIS].”
It clarifies that “qualifying crypto asset staking” means validating transactions on a blockchain, a distributed ledger technology network, “or other similar technology.” The updated law will come into effect on Jan. 31.
Crypto Leaders Donate Millions To Trump’s Inaugural Fund.
As President-elect Donald Trump’s inauguration approaches, top crypto CEOs are securing access to his administration. Circle’s CEO Jeremy Allaire revealed his company donated $1 million in tokens to Trump’s inaugural committee, joining others like Crypto.com’s Kris Marszalek and Ripple’s Brad Garlinghouse, who have met Trump to discuss industry regulations.
Major firms like Coinbase, Kraken, and Ripple have also contributed, signaling their desire for influence. Prominent companies like Coinbase and MetaMask will back the “Inaugural Crypto Ball” in Washington on January 17. These efforts highlight the crypto industry’s push to shape future digital asset policies.
Thailand Police Seize 996 Bitcoin Miners in Power Theft Case.
Thai authorities confiscated 996 Bitcoin mining machines from JIT Co. in Phanat Nikhom on January 8, accusing the company of illegally diverting electricity, causing a loss of at least $2.88 million.
The operators allegedly modified power meters to run the rigs at night while using legal electricity during the day. The facility had solar panels, but it didn’t connect them to the mining operations.
The Crime Suppression Division and Provincial Electricity Authority led the raid, with officials working to identify suspects and secure arrest warrants. This case highlights the rising issue of illegal crypto mining in Southeast Asia.
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