WazirX Wins Singapore Court Approval to Repay Users After $234 Million Hack
WazirX gains Singapore court approval to repay users after a $234M hack, marking progress in one of crypto’s largest recovery efforts.
Crypto exchange WazirX has secured approval from the Singapore High Court to proceed with its restructuring plan, paving the way for user repayments following the devastating $234 million hack that struck the platform in July 2024. The decision marks a turning point in one of the largest recovery efforts in Asia’s crypto industry and offers a glimmer of hope to more than 150,000 affected users.
The court’s approval follows months of legal negotiations and multiple revisions to the exchange’s recovery proposal. WazirX’s creditors had endorsed the plan earlier this year, but judicial clearance was delayed due to questions about how recovery tokens would be treated under Singapore’s evolving digital asset framework. The newly revised plan addressed those concerns, earning the green light from regulators and the judiciary alike.
WazirX founder Nischal Shetty expressed gratitude in a message posted on X, writing, “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.” Shetty added that the exchange is now focused on the next stage of rebuilding trust and restoring value for users.
The exchange was forced to suspend withdrawals last year after a sophisticated hack compromised its Safe Multisig wallet. Investigations later linked the breach to the Lazarus Group, a North Korean state-sponsored hacking collective responsible for a series of high-profile crypto thefts. The attack dealt a serious blow to WazirX’s operations and reputation, raising concerns about the vulnerability of centralized exchanges across emerging markets.
The restructuring plan includes a combination of token-based repayments and asset redistribution to compensate users. However, the exact timeline remains uncertain. While Shetty suggested that repayments could begin within ten days of the plan taking effect, restructuring experts have urged caution. George Gwee, director at Kroll, noted that the process could realistically take between two and three months before funds reach affected users.
For now, WazirX has confirmed that recovery operations are underway, with teams working to reestablish the exchange’s core infrastructure. The company aims not only to reimburse clients but also to regain its standing within the global crypto ecosystem. The move may help rebuild confidence in India’s broader digital asset sector, which continues to face scrutiny over regulation, security, and compliance standards.
The Lazarus-linked breach remains one of the largest cyberattacks ever to target an Indian crypto firm, underscoring the ongoing challenges exchanges face in securing user assets against increasingly sophisticated threats. With the court’s approval, WazirX now stands at a crucial juncture — a test of whether transparency and recovery can restore faith in a market still reeling from volatility and breaches.
