Digital asset exchange WazirX could resume operations as soon as next month, ending nearly nine months of downtime following a major security breach. The platform is awaiting a critical court ruling in Singapore concerning its post-hack recovery strategy and user repayment mechanism.
If Singapore’s High Court greenlights the proposed restructuring plan, WazirX anticipates a return to service, according to a recent company statement. The plan, presented by parent entity Zettai PTE Ltd, details the exchange’s path forward after suffering a devastating $234 million hack last July.
The crucial sanction hearing is scheduled for May 13. Should the court approve the plan, Zettai indicated that trading and withdrawals could recommence within ten business days, initiating a staged recovery.
“This hearing is essential for the Scheme to become legally effective,” WazirX stated, confirming completion of all necessary prerequisites and maintaining its target for a relaunch within the previously announced April–May 2025 timeframe. Recovery from such significant exchange hack compensation events is often complex and lengthy.
The July 2024 security incident, linked to North Korea’s Lazarus Group, led WazirX to halt all crypto and fiat withdrawals after attackers compromised a multisignature wallet. Since the incident, the exchange has focused on developing a court-sanctioned framework to reimburse users and reactivate its platform.
The proposed scheme involves issuing recovery tokens to affected users. These tokens would be redeemable over time, funded by the platform’s future profits, and are projected to cover between 75% and 80% of user balances held during the hack. Full repayment might extend up to 36 months, contingent on the exchange’s operational success.
Initially, the plan faced significant user opposition when revealed in February. Critics deemed the proposal unfair, particularly its connection of repayments to the performance of a planned decentralised exchange and warnings of potential five-year delays if rejected.
Despite the early controversy, the restructuring plan secured widespread support in March. Over 90% of creditors, accounting for more than $195 million in validated claims, voted affirmatively during a 10-day period managed via the Kroll Issuer Services platform. Choosing the best crypto exchange often involves considering security track records and recovery plans.
Separately, an attempt by 54 users to pursue a class-action lawsuit against WazirX in India’s Supreme Court was unsuccessful. The court dismissed the case on April 16, ruling it wasn’t the appropriate venue for handling disputes related to cryptocurrency.