Singapore Court Approves WazirX Restructuring Plan Following $234 Million Hack

The Singapore High Court has approved WazirX's restructuring plan, allowing the beleaguered crypto exchange to restart operations and begin partially compensating over 150,000 users impacted by the $234 million (roughly Rs. 1,950 crore) hack last year. The approval comes after months of uncertainty following a rejection earlier this year. A crucial turning point in WazirX's efforts to recover from one of Asia's largest crypto thefts has been accomplished with the new plan, which permits token-based repayments and a phased restoration of services. 

Zettai Working With Kroll to Execute WazirX Repayment Scheme

At the hearing, the court cleared the revised proposal after creditors backed the updated plan, paving the way for fund recovery. WazirX founder Nischal Shetty expressed gratitude to users in a post on X, saying, “It's your support and love that has made this possible.” The exchange, which operates under Singapore-based parent entity Zettai, is now working with restructuring firm Kroll to execute the repayment scheme. 

In July 2024, WazirX lost a staggering $234 million (roughly Rs. 1,950 crore) as a result of a Safe Multisig wallet breach that was allegedly caused by Liminal Custody. The hack was later linked to North Korea's Lazarus Group, a state-backed cybercrime collective known for targeting digital asset platforms.  

Concerns regarding exchange security and custodial safeguards were raised in the aftermath of the hack, which not only interfered with user access but also jolted India's cryptocurrency sector. The incident forced the exchange to suspend withdrawals and seek a halt from the Singapore court to safeguard its operations and legal standing. 

The court had initially rejected WazirX's restructuring plan in June, citing ambiguity around how recovery tokens (used to reimburse users) would comply with Singapore's evolving regulatory framework for digital asset service providers. By strengthening compliance disclosures, introducing risk controls, and clarifying user protection measures, the updated plan eased those worries and allowed the business to reopen its reimbursement process with more transparency. 

According to Shetty, operations could resume within 10 days of the scheme's enforcement. However, Kroll director George Gwee warned that it might take two to three months for users to get their money back. The approval represents a major milestone for the struggling exchange as it rebuilds user trust, strengthens governance mechanisms, and works toward restoring normal trading activity and market confidence in the coming months.