Court approval marks a major milestone for the Indian crypto exchange, paving the way for fund recovery and operational revival following one of Asia’s largest exchange breaches.
Crypto exchange WazirX has received formal approval from the Singapore High Court for its long-awaited restructuring plan, setting the stage for repayments to over 150,000 affected users after the $234 million hacking incident that shook the platform in 2024.
The decision follows months of negotiations and revisions to satisfy both creditors and regulatory concerns. Founder Nischal Shetty expressed gratitude to the community, saying the approval was “a result of immense support and patience from users who stood by WazirX during its toughest phase.”
The ruling clears the path for token-based fund distributions, allowing users to recover part of their lost crypto assets as WazirX prepares to restart trading operations in the coming weeks.
Background: $234M Hack and Lazarus Group Link
The July 2024 breach, which resulted in the loss of $234 million worth of digital assets, was traced back to a compromise in a Safe Multisig wallet. Blockchain analysts linked the attack to North Korean hacker group Lazarus, citing identical exploit patterns used in past high-profile thefts.
Following the breach, WazirX suspended withdrawals and initiated a comprehensive restructuring process, warning users that delays in creditor approval could push fund recovery “as far as 2030.”
The initial restructuring proposal was rejected earlier this year by the court due to concerns about the classification and legality of recovery tokens, but those issues have now been resolved under the revised framework.
User Repayments Expected Within Months
According to the updated plan, users will begin receiving repayments within two to three months after the approval takes effect, though timelines may vary. While Shetty previously stated funds could be returned “within 10 days” of activation, Kroll director George Gwee—who is assisting in the restructuring—clarified that “operational and technical factors may extend the process slightly.”
The approval also paves the way for WazirX’s phased reopening, restoring user confidence after more than a year of uncertainty.
Market observers view the court’s decision as a turning point for India’s crypto ecosystem, highlighting the importance of regulated recovery mechanisms in safeguarding investors.
“This case sets a precedent for how exchanges can responsibly rebuild after catastrophic losses while staying compliant with cross-border regulations,” said a Singapore-based blockchain policy expert.
With court approval secured, WazirX now faces the challenge of restoring its operations, repaying users, and reclaiming its position in Asia’s digital asset market—a recovery that could redefine investor trust in regional exchanges.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.