WazirX Receives Approval for Restructuring Plan to Repay Stolen Customer Funds

A Singapore High Court has approved WazirX’s restructuring plan, which will allow the cryptocurrency exchange to repay 75% to 80% of the stolen customer funds.

Background of the Hack

In July 2024, WazirX lost over $234 million in multiple crypto assets due to a hack attributed to North Korea’s state-sponsored hacking group, the Lazarus Group. This group was also responsible for the CoinEx hack in September 2023, which resulted in a loss of $54 million.

Restructuring Plan Details

The approved restructuring plan prioritizes creditor recovery and prevents liquidation. It proposes to return 75% to 80% of the value of the lost customer funds through an orderly, court-approved process. The plan includes the following key points:

  • Issuance of recovery tokens to affected users, indicating the amount owed and providing a share of WazirX’s future profits and recovered stolen funds.
  • Repurchase of recovery tokens over three years from WazirX’s profits, allowing users to recoup the majority of their losses.
  • Distribution of liquid assets, including gains from the recovery of the crypto markets since the attack, within 10 business days of majority approval.

“The Singapore High Court has granted us leave to convene a Scheme Meeting. This marks another significant milestone in the restructuring process as we move closer to restarting the WazirX platform.”

Community Concerns

Despite the court’s approval, many victims of the crypto exchange scam remain skeptical about WazirX’s promise to deliver. A community of affected users has expressed concerns about the user voting process, which is expected to take three months. However, the CEO is allegedly asking for an additional four months to convene the voting process, sparking distrust among the community.

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