Crypto exchange WazirX may be edging closer to helping users recover funds more than a year after a $234 million hack, with 95% of voting creditors backing a fresh restructuring plan previously rejected by the Singapore High Court.
The exchange lost $234 million in crypto from a Safe Multisig wallet in mid-July 2024, in an attack later linked to North Korean hackers. The breach forced WazirX to suspend all crypto and Indian rupee withdrawals.
On Monday, WazirX founder Nischal Shetty said that if the Singapore High Court approves the new plan, the exchange would relaunch and begin compensating users within 10 days of “the scheme taking effect.”
This timeline marks a shift from comments made during a July 30 town hall, where George Gwee, a director at restructuring firm Kroll, suggested users might face a two- to three-month wait post-approval before receiving any funds.
Fresh vote held after earlier plan was rejected
Between July 30 and Aug. 6, nearly 150,000 creditors voted, representing more than $206 million of the lost assets, WazirX reported.
A comparable plan had already won user approval in April but was blocked by the Singapore High Court, which raised concerns over how the recovery tokens intended for user compensation might be impacted by the regulatory framework for digital token service providers.
WazirX explained that recovery tokens account for the portion of user claims not covered in the initial payout and are tied to each user’s remaining balance. Token holders are expected to receive periodic distributions, funded by WazirX’s profits and any assets it manages to recover.
Meanwhile, Singapore’s central bank imposed a June 30 deadline requiring local crypto service providers to cease offering digital token services to overseas customers.
Compensation to be managed by newly formed entity
One major difference between the previous proposal and the newly approved plan lies in which entity will oversee user compensation.
Under the revised scheme, WazirX said recovery tokens would still be repurchased using the exchange’s net profits, but distributions will now be handled by Zanmai India, a reporting entity regulated by India’s Financial Intelligence Unit.
Previously, WazirX’s parent company, Zettai, was based in Singapore. However, following the High Court’s decision, it moved in June to establish a subsidiary, Zensui Corporation, in Panama and shift the platform’s crypto-related operations there.
Delays leave some users frustrated
WazirX has cautioned that without approval of its restructuring plan, repayments could be pushed back for years — potentially until 2030 — as liquidating the exchange’s assets would be a far slower process.
On X and Reddit, several users who signaled their intention to vote in favor ahead of the ballot said they were simply eager for closure, noting that the plan at least offered a chance to recover part of their funds.
On the other hand, skeptics voiced concerns about ongoing delays, regulatory hurdles flagged by the High Court, and the company’s transfer of operations.
Some also argued that holders of unaffected coins were at a disadvantage, as those tokens have appreciated significantly in value since the hack.
Others have called for legal action against WazirX, though an April 16 ruling by India’s Supreme Court dismissed a petition filed by 54 victims, stating it could not intervene on matters of crypto policy, which fall outside its jurisdiction.
WazirX has not yet responded to a request for comment.
