WazirX plans to issue Recovery Tokens (RT) to compensate users for their losses, but the community questions its feasibility

ChainCatcher news reports that after the hacking incident in July 2024, Indian cryptocurrency exchange WazirX's CEO Nischal Shetty proposed a recovery plan, which includes issuing Recovery Tokens (RT) to compensate users for their losses. However, the proposal has sparked widespread skepticism within the community.

According to the plan, users will first receive compensation of 51-55% of their pre-hack assets, with the remaining portion compensated through RT tokens, which are tied to the value of the recovered assets. Shetty stated that RT tokens may be used for trading in the future, but this requires approval from WazirX's creditors and the court.

Some users criticized WazirX for manipulating the platform and misappropriating customer funds, and for the lack of transparency in the recovery plan. Currently, WazirX's native token WRX has plummeted by 98% compared to before the hack. The community is concerned that the RT tokens lack liquidity support, which may further reduce the chances of users recovering their funds.

Shetty also linked the decentralized exchange (DEX) to the compensation plan, stating that if the community rejects the proposal, users may have to wait five years to recover their losses. This statement has raised questions about whether WazirX is attempting to delay full accountability.