Crypto exchange WazirX has received approval from the Singapore High Court for its restructuring plan, allowing it to begin repaying users after the hacking incident that resulted in a loss of $234 million last year.
The court’s ruling emerges following creditor support for a revised plan, enabling WazirX to pursue the next steps in its recovery process, which includes distributing funds through tokens and resuming exchange operations.
“Thank you to everyone who supported this difficult phase of WazirX. The Singapore High Court has approved the scheme,” Nischal Shetty said in a post on X. “It’s your support and love that has made this possible.”
Translation: 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.
The decision signifies a crucial development for the Indian exchange, which has been trying to navigate the legal system for over a year to return money to more than 150,000 affected users.
Source: Nischal Shetty
WazirX Users Approaching Fund Recovery Post $234 Million Hack
WazirX suffered a $234 million loss of crypto assets due to a breach of a Safe Multisig wallet in July 2024, leading to a suspension of withdrawals on the platform. Analysts have linked the incident to North Korean hackers and noted techniques similar to those employed by the Lazarus group.
In April, WazirX creditors had endorsed a plan after telling users that non-approval could push repayment until 2030. A previous proposal was rejected by the court due to concerns regarding the recovery tokens and proposed regulations affecting service providers in digital tokens.
WazirX Anticipates Quick Restart, but Repayment Timing is Uncertain
With this latest development, users are closer to recovering their funds after a prolonged wait. On August 20, Shetty announced that the exchange would resume operations and users might receive their funds within 10 days after the scheme becomes effective.
Despite Shetty’s optimism, George Gwee from Kroll indicated that users might have to wait two to three additional months before they could access their funds.
At this point, WazirX had not confirmed specific timelines for initiating the repayments, and Cointelegraph was awaiting a response for further clarification.
