WazirX, a prominent cryptocurrency trading platform, could restart operations next month as it awaits a critical court decision in Singapore. This ruling is expected to pave the way for its post-hack recovery plan and user compensation scheme, following nearly nine months of inactivity.

Restructuring Plan Awaits Approval

WazirX’s parent company, Zettai PTE Ltd, has submitted a detailed restructuring proposal to Singapore’s High Court. The plan outlines how the exchange intends to recover from the devastating $234 million hack it suffered in July 2024. If the court approves the proposal during the sanction hearing scheduled for May 13, the platform could resume trading and withdrawals within 10 business days.

In an update shared on April 21, WazirX emphasized the importance of the hearing, stating, “This hearing is essential for the Scheme to become legally effective.” The company also confirmed that it has completed all prior required steps and remains on track for a relaunch within the previously communicated April–May 2025 timeline.

Details of the Recovery Plan

The July 2024 hack, reportedly orchestrated by North Korea’s Lazarus Group, led to the suspension of all crypto and fiat withdrawals after attackers drained funds from a Safe Multisig wallet. Since then, WazirX has been working on a court-backed recovery scheme designed to compensate affected users and relaunch its services.

Under the proposed plan, users impacted by the hack would receive recovery tokens. These tokens, redeemable over time, would be funded by the platform’s profits. The scheme aims to cover 75% to 80% of account balances at the time of the hack, with full repayment expected within 36 months, contingent on WazirX’s financial performance.

Key Features of the Compensation Scheme:

  • Recovery tokens issued to affected users.
  • Compensation tied to the platform’s future profits.
  • 75%–80% repayment of account balances targeted.
  • Full repayment timeline of up to 36 months.

User Reactions and Creditor Support

When WazirX introduced the recovery plan in February, it faced significant criticism from users. Many expressed frustration over the repayment scheme’s reliance on the success of a new decentralized exchange. Some accused the team of offering an “unfair” solution, especially after the company warned that rejecting the plan could result in a five-year delay in compensation.

Despite initial backlash, the proposal gained momentum in March. Over 90% of creditors, representing claims worth $195 million, voted in favor of the restructuring during a 10-day voting window.

Legal Challenges and Court Dismissals

While the recovery plan progressed, a group of 54 users attempted to take legal action against WazirX in India’s Supreme Court. However, the case was dismissed on April 16, with the court stating that it was not the appropriate forum for addressing crypto-related disputes.

With the legal hurdles cleared and creditor support secured, WazirX now awaits the final court approval to implement its recovery strategy. If successful, the company could take a significant step toward rebuilding trust and resuming operations in the cryptocurrency market.

Looking Ahead

The upcoming court decision will be a pivotal moment for WazirX and its users. As the cryptocurrency exchange works to recover from one of the largest hacks in its history, the approval of its restructuring plan could mark the start of a phased recovery process, bringing much-needed relief to affected users.

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