The Singapore High Court has officially greenlit WazirX’s comprehensive restructuring plan, marking a significant step forward for the embattled cryptocurrency exchange. This pivotal approval means WazirX can now resume operations and commence the partial compensation of over 150,000 users who suffered losses in last year’s devastating $234 million hack. After facing initial rejection and a period of uncertainty, this revised plan, featuring token-based repayments and a gradual reintroduction of services, represents a critical turning point in WazirX’s journey to recover from one of Asia’s most substantial crypto thefts.
Zettai Partners with Kroll to Facilitate WazirX Repayment
During the recent court hearing, the updated proposal received the necessary endorsement from creditors, clearing the path for the long-awaited fund recovery process. Nischal Shetty, WazirX’s founder, took to X (formerly Twitter) to express heartfelt thanks to the community, emphasizing that their unwavering support made this outcome possible. WazirX, operating under its Singapore-based parent company Zettai, is now collaborating closely with restructuring experts at Kroll to meticulously implement the repayment program.
Nischal Shetty, founder of WazirX, shared his appreciation on X (Twitter): “Thank you to everyone who supported this difficult phase of WazirX. The Singapore High Court has approved the scheme. Its your support and love that has made this possible :heart: Now we set out on the next phase to work hard and create value for everyone. We’re here because of YOU…”
The catastrophic $234 million (approximately Rs. 1,950 crore) loss incurred by WazirX in July 2024 stemmed from a Safe Multisig wallet breach, which was initially attributed to Liminal Custody. Investigations subsequently connected this major hack to North Korea’s infamous Lazarus Group, a state-sponsored cybercrime organization with a notorious history of targeting digital asset platforms worldwide.
The immediate aftermath of the hack sparked widespread concerns about the robustness of exchange security and custodial safeguards. This breach not only disrupted user access but also sent shockwaves throughout India’s burgeoning cryptocurrency sector. Consequently, WazirX was compelled to halt all withdrawals and petitioned the Singapore court for a moratorium to protect its operations and legal position.
Earlier in June, the court had initially turned down WazirX’s proposed restructuring plan. This rejection was primarily due to a lack of clarity regarding how the recovery tokens, designated for user reimbursement, would align with Singapore’s continually evolving regulatory landscape for digital asset service providers. However, the revised plan successfully addressed these concerns by enhancing compliance disclosures, implementing robust risk controls, and clearly outlining user protection measures, thereby enabling the exchange to proceed with a more transparent reimbursement process.
Shetty indicated that operations could potentially restart within ten days of the scheme’s full implementation. Conversely, George Gwee, a director at Kroll, cautioned that users might need to wait two to three months to receive their compensation. Nevertheless, this court approval stands as a significant triumph for the embattled exchange, paving the way for it to meticulously rebuild user trust, enhance its governance structures, and steadily work towards resuming regular trading activities and restoring overall market confidence in the months ahead.
(A related video explaining the situation was also featured.)