WazirX gains 95% creditor approval for recovery plan after $234M hack; court ruling to determine crypto exchange’s future.
WazirX is moving closer to recovery after a devastating $234 million hack in July 2024, as over 95% of voting creditors have approved a revised restructuring plan. This milestone comes months after the Singapore High Court initially rejected an earlier proposal. Its approval is a new ray of hope to the affected users who potentially can get their compensation within 10 days in case the court approves the new scheme. This information was posted on the WazirX official X account.
Zettai Seeks Court Approval for Revised WazirX Recovery Plan
North Korean hackers of the Lazarus Group are believed to have been taking advantage of a loophole and this compelled WazirX to halt crypto and Indian rupee withdrawals. This has left thousands of users in limbo, and this has led to a legal tussle with a consumer court earlier this year, dismissing a class-action lawsuit.
As a reaction to the crisis, Zettai Pte Ltd, the company in charge of the restructuring of WazirX, applied to Singapore in August 2024 to obtain a moratorium to cover the remaining assets of the company. However, the Singapore High Court rejected an earlier restructuring plan earlier this year.
WazirX founder Nischal Shetty added that the exchange will resume in case the new restructuring plan is accepted by the Singapore High Court. WazirX will commence to repay the users within 10 days of the plan going into effect.
The most recent vote cast on this new plan saw an overwhelming 95 percent of voting creditors supporting it, with 95.7 percent of Scheme Creditors and 94.6 percent of associated Approved Claims voting in its favor. This high approval indicates the belief in the community in the recovery process. The founder of WazirX, Nischal Shetty, thanked the creditors in both voting rounds and said that the project could restart should the court approve it.
Joshua Taylor and Henry Anthony Chambers of Alvarez & Marsal (SE Asia) Pte Ltd independently verified the credibility of the voting process. They checked all the votes for accuracy and emailed the official results to all the Scheme Creditors.
Related Reading: Singapore Court Rejects WazirX Restructuring Plan | Live Bitcoin News
WazirX Recovery Timeline Could Stretch Six More Months
In the interim, Zettai has proceeded to file an amended summons in HC/SUM 940/2025 at the Singapore Court to approve the Amended Scheme. The verdict of the court that will come in the next few weeks will be critical to the future of WazirX. If approved, the plan may set an example for how crypto exchanges should handle large losses and repay users worldwide.
Nevertheless, recovery is not easy. The restructuring might take up to six months to complete. As a result, users might face more delays in receiving their funds. The ruling of the court case will establish or fail the possibility of WazirX to recover and regain confidence in its circle. The affected users should, until then, keep themselves informed and patient, as the legal and financial processes play out. This is the case in point that crypto exchanges are having a hard time trying to strike the right balance between creativity and security.
The decision of the Singapore High Court will not only affect WazirX but also affect the treatment of similar cases all over the world. The success of the exchange in overcoming this crisis may determine its image and the reputation of the cryptocurrency business in general.