Cryptocurrency exchange WazirX has finally received approval for its restructuring plan from the Singapore High Court, paving the way for repayments to users following last year’s $234 million hack.
The court’s decision came weeks after creditors supported the amendment. This approval will allow WazirX to begin the next phase of its recovery process, including token-based fund distribution and reinstatement of exchange operations.
“Thank you to everyone who has supported WazirX through this difficult phase. The Singapore High Court has approved this plan. It was your support and love that made this possible,” WazirX founder Nischal Shetty said in a post on X.
The court’s approval marks a milestone for the India-based exchange, which has already spent more than a year navigating the legal hurdles necessary to return funds to more than 150,000 users.
sauce: Nishal Shetty
WazirX users inch closer to recovering funds after $234 million hack
WazirX lost approximately $234 million in crypto assets due to the Safe Multisig wallet breach in July 2024, forcing the exchange to suspend withdrawals on its platform.
Analysts have linked the attack to North Korean hackers after observing similar techniques commonly used by the Lazarus hacker group.
WazirX’s creditors approved a similar scheme in April, months after the exchange notified users that repayments could be delayed until 2030 if not approved.
However, the Singapore High Court did not approve the proposal, citing concerns about how recovery tokens used to compensate users would be affected by the proposed regulatory framework for digital token service providers.
Related: $235 million WazirX exchange hack impacts India’s crypto industry
WazirX aims to restart quickly, but repayment schedules vary
The latest developments are inching closer to getting their funds back after more than a year of waiting.
On August 20, Shetty said that after court approval, the exchange would be reinstated and users would be able to receive funds within 10 days of the scheme coming into force.
While Shetty seemed optimistic about a quick turnaround, George Gwee, a director at restructuring firm Kroll, which is working with WazirX, said users may have to wait two to three months after approval to finally receive their funds.
As of this writing, WazirX had not released a clear estimate of when repayments would begin.
Cointelegraph reached out to WazirX for clarification, but did not receive a response in time for publication.
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