WazirX Restructuring Plan Wins Court Approval After $234M Hack
Singapore High Court Approves WazirX Recovery
Cryptocurrency exchange WazirX has received final approval from the Singapore High Court for its restructuring plan, clearing the way for user repayments following a major $234 million hacking incident in July 2024. The court’s decision comes after WazirX creditors agreed to a revised proposal, enabling the India-based exchange to begin token-based fund distributions and restart operations. The WazirX restructuring plan marks a significant milestone as the platform seeks to address losses from the Safe Multisig wallet breach.
Background: The 2024 WazirX Hack
WazirX suffered a $234 million loss when its Safe Multisig wallet was breached in July 2024, resulting in withdrawal suspensions for its user base of more than 150,000 people. Cybersecurity analysts later connected the incident to North Korean hackers, linking techniques used in the attack to the notorious Lazarus hacking group. Since the breach, WazirX has faced numerous legal and regulatory challenges while working towards returning funds to affected users.
From Creditors’ Vote to Court Approval
In April 2024, a majority of WazirX creditors backed a recovery scheme centered around compensating users with recovery tokens. However, the Singapore High Court initially withheld approval over concerns related to regulatory changes affecting digital token service providers. After months of revision and engagement, WazirX addressed the court’s concerns, leading to the plan’s approval and allowing the exchange to move forward with its next recovery phase.
WazirX founder Nischal Shetty confirmed the court’s decision via X (formerly Twitter): “Thank you to everyone who supported this difficult phase of WazirX. The Singapore High Court has approved the scheme. It’s your support and love that has made this possible.” (Reporting via Cointelegraph)
User Repayments and Exchange Revival Timeline
Following the court’s approval, Shetty stated that the exchange’s operations would be revived, and users could begin receiving repayments within 10 days of the scheme’s implementation. However, George Gwee, director at the restructuring firm Kroll collaborating with WazirX, cautioned that repayments may require two to three months after approval.
At this stage, WazirX has not published definitive timelines for when user funds will be returned. Cointelegraph reports that inquiries sent to the exchange about repayment specifics had not received a response at the time of publication.
What’s Next for WazirX and Its Users?
The WazirX restructuring plan is set to enter its active execution phase, promising repayments to impacted users and the gradual restoration of exchange operations. The court’s approval puts WazirX on a path to recovery, although exact payment dates remain uncertain.
For ongoing coverage of major cryptocurrency industry developments, users can monitor regulatory and operational updates from exchanges affected by security threats.
