Key Takeaways
- Singapore court approved WazirX’s restructuring plan on Oct. 13.
- The ruling allows partial repayment of user funds lost in the 2024 hack.
- Victims will recover around 55% of assets, split between crypto/cash and recovery tokens.
More than a year after one of the largest exchange hacks in Asia, WazirX has secured court approval to proceed with a long-awaited restructuring.
On Oct. 13, Singapore’s High Court signed off on the Indian crypto exchange’s repayment plan, clearing the path for victims of the $235 million hack to recover part of their funds.
Court Approval and Payout Terms
WazirX CEO Nischal Shetty confirmed the court’s approval on X, calling the decision the beginning of the next phase.
The court ruling sets repayments at about 55% of lost assets, split into 52% liquid crypto or cash and 48% recovery tokens tied to WazirX’s future earnings.
Trading suspensions and withdrawals, frozen since the hack, are expected to be lifted in the coming days.
Shetty previously suggested that initial repayments could begin within ten days of approval, though no firm date has been disclosed.
“Thank you to everyone who supported this difficult phase of WazirX. The Singapore High Court has approved the scheme. Now we set out on the next phase to work hard and create value for everyone,” Shetty said.
Why WazirX Users Settled for Less
Hack victims were presented with two options:
- Accept the restructuring plan and recover just over half their assets quickly.
- Pursue full liquidation, a process estimated to take three to five years with no guarantee of higher payouts.
Most opted for the restructuring path, prioritizing speed over maximum recovery.
Still, critics argue that the plan unfairly shifts losses onto users.
Because repayments will be made in dollar values pegged to July 2024 prices, customers will miss out on the subsequent crypto bull run that has seen Bitcoin and other tokens soar.
Looking Ahead
For WazirX, the ruling provides both relief and responsibility. The exchange now faces the task of rebuilding user trust while relaunching services, including a planned decentralized exchange (DEX).
For customers, partial repayment marks the end of a long wait — but also a reminder of how hacks continue to expose the vulnerabilities of centralized platforms.
As WazirX begins repayments, the episode will likely serve as a test case in Asia for how courts, exchanges, and users navigate the fallout of major crypto collapses.
Prashant Jha is a seasoned crypto journalist based in Delhi, India, with a Bachelor’s Degree in Computer Science Engineering. Passionate about the evolving world of blockchain and cryptocurrencies, he has been a dedicated voice in the industry since 2018. Prashant’s expertise lies in regulatory reporting, where he unravels complex legal and financial developments with clarity and precision. Before joining CCN in 2024, he honed his craft at Cointelegraph, establishing himself as a trusted name in crypto journalism.
His coverage spans major industry events, including the high-profile collapses of FTX, Three Arrows Capital (3AC), and LUNA, offering readers insightful analyses of their regulatory and market implications. Prashant’s technical background enables him to bridge the gap between intricate blockchain technology and its real-world applications, making his work accessible to novices and experts.
Beyond his professional pursuits, Prashant is an avid music enthusiast, often exploring diverse genres to unwind. A sports lover, he has a particular passion for cricket and frequently engages in discussions about the game. His multifaceted interests and sharp journalistic instincts make him a valuable contributor to CCN, where he continues shaping the crypto landscape's narrative.
