WazirX Secures Court Approval for Payouts to Hack Victims

In a significant development for the cryptocurrency market, WazirX, a leading crypto exchange, has received approval from the Singapore High Court to implement its restructuring plan. This decision paves the way for compensating over 150,000 users affected by a massive hack that occurred in 2024, resulting in a loss of approximately $234 million.

Breakdown of the Hack and Its Aftermath

In July 2024, WazirX faced a crippling security breach when hackers infiltrated its Safe Multisig wallet. The attack was later linked to the infamous North Korean hacking group, Lazarus, known for employing similar tactics in previous cybercrimes. The breach forced WazirX to suspend all fund withdrawals and prompted an extensive investigation involving cybersecurity experts and law enforcement agencies. Despite these efforts, the exchange faced a year-long delay in compensating its users.

The Path to Recovery

Following the hack, WazirX embarked on arduous legal and procedural processes to restore operations and reimburse affected users. In April 2025, users and creditors supported an initial compensation scheme proposed by WazirX’s management. Despite this backing, the court initially rejected the plan due to concerns about the regulatory landscape for tokenized assets.
However, with the recent court approval, WazirX users are closer to recovering their funds. According to Nischal Shetty, the founder of WazirX, once the plan is implemented, users should expect to receive their funds within ten days. Nevertheless, George Gvi, a director at the consulting firm Kroll assisting with the restructuring, suggests that payouts could commence two to three months post-approval due to necessary technical and procedural steps.

Technical and Procedural Challenges

The transition to the next phase involves using a tokenized compensation mechanism to facilitate user payouts. Although this innovative approach promises efficiency, it also entails navigating complex regulatory and technical landscapes. The process requires meticulous attention to detail to ensure compliance and security, underscoring the need for thorough planning and execution.

Future Implications for the Crypto Market

The successful restructuring and compensation strategy by WazirX is poised to set a precedent for crisis management within the cryptocurrency sector. As regulatory bodies worldwide continue to scrutinize digital assets, the crypto community keenly observes how exchanges like WazirX adapt to ensure user protection and compliance. This case highlights the importance of robust security measures and regulatory foresight in safeguarding digital assets and maintaining user trust in an ever-evolving market.