Indian crypto exchange WazirX is preparing for a potential relaunch, pending a key decision from Singapore’s High Court on May 13 regarding its restructuring and user compensation plan.
The exchange, which suffered a $234 million hack in July 2024, says it could resume operations and begin compensating affected users within 10 business days if the court approves its proposal.
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WazirX Parent Zettai Completes Steps Ahead of Court Sanction Hearing
In an update posted on April 21, WazirX’s parent company, Zettai PTE Ltd, confirmed it had completed all necessary steps leading up to the court’s sanction hearing.
“This hearing is essential for the Scheme to become legally effective,” the company stated, emphasizing its commitment to following legal procedures despite delays inherent in court processes.
The massive hack, attributed to North Korean cybercriminals, targeted WazirX’s Safe Multisig wallet, forcing the exchange to suspend both crypto and fiat withdrawals.
In response, Zettai crafted a restructuring plan centered around issuing recovery tokens, which will be gradually repurchased using the exchange’s future profits. The plan is designed to return 75% to 80% of users’ lost balances.
Earlier this month, over 90% of voting creditors approved the proposal, avoiding a scenario where repayments could have been delayed until 2030. The plan now awaits final court approval before implementation.
“We understand the eagerness around the platform restart and truly appreciate your continued patience,” WazirX said. The platform reaffirmed its goal to resume services within the April-May 2025 timeframe.
FAQ: What’s the current update on the restart of WazirX operations?
A: We understand the eagerness around the platform restart and truly appreciate your continued patience. Since the beginning, we have communicated that the First Distribution and restart would occur within the… pic.twitter.com/VJtfX4EBLh
— WazirX: India Ka Bitcoin Exchange (@WazirXIndia) April 21, 2025
Meanwhile, legal challenges continue. On 16 April 2025, India’s Supreme Court dismissed a petition filed by 54 victims of the hack. The victims were seeking legal action against WazirX, its co-founder Nischal Shetty, Binance, and custody provider Liminal.
The justices ruled that the matter fell outside the court’s jurisdiction. The court advised petitioners to approach a regulatory authority instead.
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Indian Supreme Court Dismisses WazirX Hack Petition
As reported, the Indian Supreme Court has dismissed a petition filed by 54 victims of the 2024 WazirX hack. The heist involved ₹2,000 crore ($234 million) being stolen by North Korea’s Lazarus Group.
The court cited the lack of a clear regulatory framework for cryptocurrencies as the reason for rejecting claims against WazirX’s management, Binance, and Liminal Custody.
Victims accused the exchange of negligence and poor security practices. However, they were told by the court that the issue falls under policy-making, not judicial intervention.
The petition had requested a Special Investigation Team and a forensic audit. But the court advised them to seek resolution through regulatory bodies like the RBI, SEBI, and CBI.
The decision has reignited criticism of India’s crypto stance. It highlights the contradiction between taxing crypto profits at 30% while offering little legal protection to investors.
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Key Takeaways
- WazirX is set to relaunch pending Singapore’s High Court approval of its restructuring and compensation plan.
- Over 90% of creditors backed WazirX’s recovery token plan, aiming to return up to 80% of user funds if the court gives the green light.
- India’s Supreme Court dismissed victims’ legal action due to regulatory gaps, sparking criticism over the country’s lack of crypto investor protection.
The post WazirX Eyes Comeback as Court Ruling on Restructuring and Compensation Nears appeared first on 99Bitcoins.
