WazirX Set to Relaunch After $234 Million Hack, Awaits Singapore Court’s V

WazirX, India's top cryptocurrency exchange, is poised to start anew after it became a victim of one of the biggest hacks in July 2024. The exchange had lost about $234 million (about ₹1,950 crore) through a security breach. Now, the company is looking forward to a critical court ruling that will decide its future. If the Singapore High Court greenlights on May 13, 2025, WazirX would be able to restart operations in 10 working days and start compensating users for their loss.

What Happened in the WazirX Hack

In July 2024, WazirX's Safe Multisig Wallet was hacked by hackers, who made off with crypto assets valued at $234 million. Investigations implicated North Korean hackers in the hack. After this incident, WazirX withdrew crypto and INR withdrawals, leaving thousands of users stranded without access to their funds. The incident took a huge toll on the reputation of the exchange and on user trust.

Court Hearing on May 13 Could Shape WazirX's Comeback

Zettai PTE Ltd, the parent company of WazirX, confirmed that it has completed all procedural steps required by the court. The final step is the court hearing scheduled for May 13 in the Singapore High Court. This hearing will determine whether Zettai’s proposed restructuring plan and user compensation framework are legally approved.

Upon approval, the exchange will reopen business in 10 days, and impacted users will start getting their compensation for the lost money.

How Will Users Be Compensated?

At a meeting of creditors convened on April 7, more than 90% of those attending voted in support of the restructuring plan put forward by Zettai. Under the plan, WazirX will issue "Recovery Tokens," which the exchange will progressively purchase back with its net earnings. This mechanism should recover between 75% and 80% of lost user funds in due course.

Zettai previously cautioned that compensation might be put off until 2030 or later if the restructuring plan wasn't approved. 

Also Read: MANTRA Burns 150M OM Tokens: Recovery Plan After $5B Crash

Supreme Court Rejects Plea on WazirX Hack

A total of 54 WazirX hack victims submitted a petition to the Indian Supreme Court against WazirX, its founder Nischal Shetty, Binance, and custodian platform Liminal. They asked for a legal audit and enforcement action. However, on April 16, the Supreme Court rejected the plea, saying that it comes under the jurisdiction of crypto regulation, not judicial intervention. The court directed the petitioners to go to the concerned regulatory authorities instead.