WazirX Restructuring Approved: Users to Retrieve Crypto Funds
Indian crypto exchange WazirX has secured crucial approval from the Singapore High Court for its restructuring scheme, paving the way for users to finally retrieve their crypto funds. This significant development follows the infamous July 2024 hack, attributed to North Korea's Lazarus Group, which illicitly siphoned nearly $235 million—approximately 47% of the platform's $500 million reserves. The breach forced WazirX to cease operations, leaving users unable to access their assets for months. The court's decision marks a pivotal moment, greenlighting the platform's plan to restart operations and redistribute user crypto.
The path to approval was complex, with WazirX's parent company, Zettai, based in Singapore, necessitating hearings there. An initial restructuring proposal in June was rejected by the High Court due to non-compliance with Singapore's Financial Services and Markets Act (FSMA) and concerns regarding the involvement of Panama-based Zensui in the redistribution process. WazirX subsequently revised its plan, proposing that its Indian operational component handle the crypto redistribution. This period was fraught with tension for creditors, as the exchange had warned that another rejection could delay fund distribution by at least two more years.
The successful October 13th hearing, as announced by founder Nischal Shetty, brought immense relief. While a precise start date for user redistribution is pending, earlier communications indicated creditors could expect their crypto within 10 days of the scheme becoming effective. This resolution for WazirX occurs amidst a broader surge in crypto thefts by North Korean hackers, who, according to blockchain analytics firm Elliptic, have stolen over $2 billion in digital assets in 2025—a record high. Notable incidents include a massive $1.46 billion theft from Bybit and sophisticated tactics like using fake job offers to target individuals.
(Source: https://bitcoinist.com/wazirxs-singapore-court-user-crypto-distribution/)
