- The Singapore High Court has scheduled a hearing for May 13, 2025, to decide on WazirX’s proposed restructuring and compensation plan
- In April 2025, 93.1% of voting creditors approved the plan, which includes issuing Recovery Tokens and relaunching the platform
- The plan follows a July 2024 hack that resulted in the theft of approximately $234.9 million, nearly 45% of WazirX’s assets
WazirX is on the verge of a potential relaunch, pending the Singapore High Court’s approval of its restructuring plan on May 13, 2025. The plan, backed by a significant majority of creditors, aims to compensate users affected by the massive 2024 hack through Recovery Tokens and a platform relaunch. The outcome of the court’s decision will determine the future trajectory of the exchange, which has been under threat ever since the devastating hack.
Road to Recovery
On July 18, 2024, WazirX suffered a significant security breach, losing approximately $234.9 million in digital assets. The attack, attributed to North Korea’s Lazarus Group, exploited vulnerabilities in the exchange’s multisig wallet system. In response, WazirX halted operations, freezing user withdrawals and initiating legal proceedings to address the crisis.
In the wake of the hack, WazirX’s parent company, Zettai Pte Ltd, filed for a four-month conditional moratorium under Singapore’s Insolvency, Restructuring, and Dissolution Act. This moratorium, granted in September 2024, provided the company with temporary relief from legal actions, allowing time to develop a comprehensive restructuring plan.
The proposed plan includes issuing Recovery Tokens to affected users, which would be tradable and subject to periodic buybacks. Additionally, WazirX plans to launch a decentralized exchange (DEX) as part of its recovery strategy. In April 2025, the plan received overwhelming support from creditors, with 93.1% voting in favor, representing 94.6% of the total claim value.
Various Options on the Table
The Singapore High Court is set to review the restructuring plan on May 13, 2025. If approved, WazirX intends to resume operations and initiate the first round of user compensation within 10 business days of the scheme’s effective date. However, if the court rejects the plan, the company warns that repayments could be delayed until 2030 due to ongoing legal and logistical challenges.
While the restructuring plan offers a path forward, user sentiment remains cautious. Many affected users have expressed skepticism, citing past management issues and the scale of the breach. The success of WazirX’s comeback largely depends on the court’s decision and the company’s ability to restore trust within its user base, two factors that are far from predictable at this point in time.
