Singapore court approves WazirX restructuring plan after $234M hack

Crypto exchange WazirX has finally secured approval from the Singapore High Court for its restructuring plan, paving the way for user repayments following the $234 million hacking incident last year. 

The court’s decision comes weeks after creditors backed a revised proposal. The approval allows WazirX to start the next phase of its recovery process, including token-based fund distributions and reviving the exchange’s operations.

“Thank you to everyone who supported this difficult phase of WazirX. The Singapore High Court has approved the scheme,” WazirX founder Nischal Shetty said in a post on X. “It’s your support and love that has made this possible.”

The court’s approval marks a major milestone for the India-based exchange, which already spent over a year navigating the legal hurdles required to return funds to over 150,000 affected users. 

Source: Nischal Shetty

WazirX users inch closer to fund recovery after $234 million hack

WazirX lost about $234 million in crypto assets from a Safe Multisig wallet breach in July 2024, which forced the exchange to pause withdrawals on the platform.

The attack has since been linked to North Korean hackers, as analysts observed similar techniques often used by the Lazarus hacking group. 

In April, WazirX creditors approved a similar scheme months after the exchange told users that non-approval could delay repayments until 2030. 

However, the Singapore High Court did not approve the proposal, citing concerns over how the recovery tokens, which will be used to compensate users, would be affected by a proposed regulatory framework for digital token service providers. 

Related: $235M WazirX exchange hack has implications for India’s crypto industry

WazirX eyes swift restart, but repayment timelines vary

With the latest development, users are inching closer to seeing their funds back after over a year of waiting.

On Aug. 20, Shetty said that after the court’s approval, the exchange would be revived, and users could get their funds within ten days of the scheme taking effect. 

While Shetty seemed optimistic about a quick turnaround, George Gwee, a director at restructuring firm Kroll that is working with WazirX, said users may need to wait two to three months after the approval before they can finally receive funds. 

At the time of writing, WazirX has not published any definite estimates of when the repayments will officially begin. 

Cointelegraph reached out to WazirX for clarification, but did not get a response by publication. 

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