Indian cryptocurrency exchange WazirX is preparing for a potential relaunch, contingent on a decision by Singapore’s High Court on May 13 regarding its restructuring and user compensation plan.
Following a significant $234 million hack in July 2024, WazirX has stated that it will resume operations if the court approves its proposals. In an update, the company mentioned that its parent firm, Zettai PTE Ltd, has completed all necessary steps for the court-sanctioned plan, which includes distributing recovery tokens to compensate affected users. If the plan is approved, WazirX aims to restart within 10 business days, with users potentially recovering 75–80% of their balances.
The July exploit, which targeted a Safe Multisig wallet, has been linked to North Korean hackers. The breach forced WazirX to halt crypto and Indian rupee withdrawals, prompting a major overhaul of its operational and security frameworks.
Zettai’s restructuring plan received overwhelming support from creditors, with over 90% voting in favour on April 7. The tokens, central to the recovery mechanism, would be repurchased using the platform’s future profits. WazirX had earlier cautioned that reimbursements might have been delayed until as late as 2030 without creditor approval.
“This hearing is essential for the Scheme to become legally effective.”
WazirX noted.
“While we’ve worked to stay aligned with the previously shared timelines, court proceedings operate independently, and we respect that process.”
In a separate legal development, India’s Supreme Court has dismissed a petition from 54 users affected by the WazirX hack, which sought a forensic audit and legal action against WazirX, its founder Nischal Shetty, Binance, and custody partner Liminal. The justices ruled the case pertained to crypto regulation, a matter outside the judiciary’s jurisdiction, and advised the petitioners to approach relevant regulatory authorities. Despite this setback, WazirX reiterated its dedication to transparency and user recovery, stating that the platform’s restart and first distribution are expected between April and May 2025.
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