WazirX awaits court approval for its restructuring plan, aiming to resume operations and compensate users after $234M hack - IcoHolder.

WazirX, the cryptocurrency exchange that was hacked for $234 million last July, may soon resume operations following a crucial court decision in Singapore. In an update on April 21, the platform revealed that its parent company, Zettai PTE Ltd, is awaiting approval for its restructuring plan from Singapore's High Court. A hearing scheduled for May 13, 2025, could clear the way for the platform’s recovery and user compensation efforts.

The restructuring proposal outlines a plan to restart trading and withdrawals within 10 business days of the court’s approval, kicking off a phased recovery process. This marks the latest step in WazirX’s recovery since it was forced to halt all crypto and fiat withdrawals after the hack, attributed to North Korea's Lazarus Group, drained funds from the exchange’s Safe Multisig wallet.

WazirX stated that all preliminary steps for the plan have been completed and it remains on track for a relaunch within the April-May 2025 window. If the plan is approved, affected users will receive recovery tokens, which can be redeemed over time through the exchange's profits. These tokens are expected to cover between 75% and 80% of account balances at the time of the hack, though full repayment could take up to 36 months, depending on the platform's performance.

The recovery plan faced backlash when it was first unveiled in February, with users criticizing the proposal for linking repayments to the success of a new decentralized exchange. However, after WazirX warned that rejecting the plan could lead to a five-year delay in compensation, the proposal gained traction. By March, over 90% of creditors—representing claims worth over $195 million—voted in favor of the restructuring.

Additionally, while a group of 54 users attempted to pursue legal action in India’s Supreme Court, the case was dismissed on April 16. The court ruled that it was not the appropriate forum for resolving crypto-related disputes, allowing WazirX’s recovery efforts to proceed.