WazirX Gets Green Light to Repay Users After $235M Crypto Hack

Indian cryptocurrency exchange WazirX has received approval from the Singapore High Court for its restructuring plan. 

This approval allows the exchange to repay customer funds frozen during a $235 million cyberattack in July 2024. The hack, attributed to North Korea’s Lazarus Group, had left user assets inaccessible for months.

The restructuring plan, filed under Singapore’s Companies Act 1967 by WazirX’s parent company Zettai, focuses on recovering creditor claims while avoiding liquidation. The court emphasized a speedy resolution, enabling the exchange to distribute net liquid assets to users within 10 business days after the plan’s approval.

User Voting Process and Fund Recovery

As part of the approved plan, WazirX will conduct a user voting process to finalize fund distribution. This voting is expected to conclude within three months, following which net liquid assets will be distributed to users. These funds include any gains from recent bull market conditions.

Additionally, the platform has introduced recovery tokens for remaining claims. These tokens, tied to future platform profits and recovered assets, offer creditors a pathway to benefit from WazirX’s planned decentralized exchange. 

A three-year buyback program will further support the recovery effort, funded by profits and recoveries from stolen assets.

Progress in Asset Recovery Efforts

WazirX has reported freezing $3 million worth of USDT from stolen assets in collaboration with authorities from the United States, Japan, and South Korea. Investigations into the remaining stolen funds are ongoing, with cooperative efforts to retrieve additional assets linked to the hack.

📢 Recovery Update: ~$3M USDT Frozen

As part of the ongoing recovery efforts following the cyberattack, ~$3M USDT has been successfully frozen. This marks an important milestone in safeguarding user interests and recovering stolen assets.

🔍 Why This Matters:

» Rapid Action:… pic.twitter.com/VIn7fEeOcr

— WazirX: India Ka Bitcoin Exchange (@WazirXIndia) January 17, 2025

The Singapore High Court noted that restructuring over liquidation was the optimal course, considering financial projections from Kroll, which highlighted the feasibility of asset recovery and creditor repayment through this approach.

WRX Token Shows Market Activity

Amid the repayment developments, WazirX’s native token, WRX, experienced a 3% price increase, trading at $0.02986 at the time of reporting. Its 24-hour low and high were $0.02557 and $0.03272, respectively.

Despite the positive movement, WRX faces challenges after Binance delisted the token, raising concerns among traders. Nonetheless, the repayment plan has generated interest in WRX as users and investors monitor its performance.

WazirX users remain focused on the recovery process, with the restructuring plan offering hope for reclaiming frozen funds while collaborative efforts continue to address the stolen assets.