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WazirX confirms restart on track as it awaits sanction hearing in May

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Indian crypto exchange WazirX, which was hacked for $234 million last July, says it is on track to restart its operations pending a May 13 court decision on its restructuring proposal and user compensation plan. 

If Singapore’s High Court gives the nod, WazirX parent company Zettai PTE Ltd can restart the exchange and begin its compensation scheme for affected users within 10 business days, WazirX said in an April 21 update to X.

WazirX lost $234 million of crypto from a Safe Multisig wallet mid-July 2024 in an attack since attributed to North Korean hackers, forcing them to temporarily pause all crypto and Indian rupee withdrawals on the platform.

Source: WazirX

“Zettai has completed all prior required steps, and the next key step is the sanction hearing, which the Singapore High Court has scheduled for May 13, 2025,” the firm said.

“This hearing is essential for the Scheme to become legally effective. While we’ve worked to stay aligned with the previously shared timelines, court proceedings operate independently, and we respect that process.”

On April 7, more than 90% of the voting creditors voted in favor of the platform’s post-hack restructuring plan, which involved the issuance of recovery tokens.

The tokens would be repurchased using net profits from the exchange and could yield 75% to 80% of users’ account balances at the time of the cyberattack.

WazirX had warned that repayments from the $235 million hack could be delayed until 2030 if creditors didn’t approve its proposed restructuring plan. 

Singapore’s High Court gave Zettai permission to convene a creditors’ meeting to propose a possible remedy for users and a plan to get the exchange back online in January.

Related: Bybit CEO: Two-thirds of Lazarus-hacked funds remain traceable

“We understand the eagerness around the platform restart and truly appreciate your continued patience,” WazirX said.

“Since the beginning, we have communicated that the first distribution and restart would occur within the April-May 2025 window.”

Supreme Court of India dismisses WazirX users petition 

A separate April 16 court judgment from the Supreme Court of India dismissed a petition filed by 54 victims of the hack, who sought legal action against WazirX, Shetty, Binance and custody provider Liminal. Petitioners also asked the court to audit WazirX’s accounts.  

Justices B.R. Gavai and Augustine Masih rejected the petition, saying the court could not rule on the case because it was a matter of crypto policy, which the court doesn’t have the authority to rule on. 

Gavai and Masih advised the petitioners to approach a regulatory body or other relevant authority to hear the matter instead.

Magazine: Uni students crypto ‘grooming’ scandal, 67K scammed by fake women: Asia Express

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