Popular Indian-based cryptocurrency exchange WazirX has announced plans to kick off its reimbursement program. The company’s founder, Nischal Shetty, confirmed the news via a post on his verified X account.
It has been revealed that the Singapore High Court approved WazirX’s restructuring plan, clearing the way for the exchange to pay $234 million following its recent hacking incident. Notably, this court approval came shortly after creditors backed a revised proposal. With the green light from the court, WazirX can now move on to the next stage of its recovery, which includes distributing funds through tokens and getting the exchange back on its feet.
Shetty in his X post appreciated everyone who supported WazirX during the difficult phase, adding that their love and support kept them going. He added that WazirX has set out on the next phase to work hard and create value for everyone.
This approval by the Singapore High Court marked a milestone for WazirX which has already spent over a year navigating the legal hurdles required to return funds to over 150,000 users.
WazirX lost $234.9 million to hackers
Recall that the journey to recovery began in July 2024 after WazirX lost about $234.9 million worth of crypto assets to hackers. As revealed, the Safe Multisig wallet breach forced the exchange to pause withdrawals on its platform. The exchange also ceased operation on July 18th, 2024. WazirX linked the attackto North Korea hackers, Lazarus, after analysts observed a similar technique often used by the Lazarus group.
Following the attack, WazirX informed users that withdrawals could be delayed until 2030. To avoid this prolonged wait, the exchange introduced a scheme in April, which was approved by users. However, the Singapore High Court did not sign off on the proposal. The court expressed concerns about the recovery token and how it would be used to compensate users. It also added that the recovery process would be influenced by the regulatory framework governing digital token service providers.
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