WazirX Gains Final Court Approval for Repayment Scheme After $234M Hack

The path to recovery for thousands of affected users of the WazirX crypto exchange has become clearer. WazirX’s parent company, Zettai Pte Ltd, has finally secured approval from the Singapore High Court for its critical restructuring plan. This landmark decision paves the way for the exchange to begin compensating users who lost funds during the massive $234 million cyberattack that occurred last year. The court’s sanction follows months of complex legal proceedings and creditor engagement.

The Path to User Compensation

The restructuring plan is the culmination of efforts to ensure WazirX avoids liquidation and offers a structured approach to compensating its approximately 150,000 affected users. The successful court approval allows the exchange to move into the final phase of its recovery process, which includes the distribution of funds to creditors.

WazirX founder Nischal Shetty confirmed the milestone on social media, expressing gratitude for the community’s backing: “Thank you to everyone who supported this difficult phase of WazirX. The Singapore High Court has approved the scheme. It’s your support and love that has made this possible.”

Restructuring Details and Timeline

The approved scheme outlines a strategy for distributing funds through a combination of tokens and direct payouts. Under earlier proposals, the plan aimed to allow users to recover a significant portion of their balances, reportedly up to 80% through various means.

While the court approval is a major step, the exact timeline for distributions remains a point of focus. Although the founder has expressed optimism about a swift turnaround, suggesting funds could be available within ten days of the scheme taking effect, an advisor for the restructuring firm, Kroll, indicated that users might have to wait an estimated two to three months before final repayments begin. This process aims to stabilize the exchange’s operations and gradually restore user trust after the devastating breach, which has been linked to North Korean hacking groups.