WazirX users may soon recover funds as Singapore’s High Court approves the $234 million restructuring plan — marking a major win for crypto regulation and investor trust.

A Year After the Hack, Hope Returns

After months of uncertainty, one of India’s biggest crypto exchanges is finally set to make a comeback.
The Singapore High Court has officially approved WazirX’s restructuring plan, clearing the way for the exchange to restart operations and begin compensating over 150,000 affected users following the $234 million hack that shook the platform in July 2024.

The ruling is more than a technical victory — it’s a sign of renewed trust in crypto’s ability to recover through transparent governance and legal cooperation.

📉 What Happened: The $234 Million Breach

In July 2024, WazirX’s Safe Multisig wallet was breached, resulting in losses of approximately $234 million.
Blockchain analysts later linked the incident to North Korea’s Lazarus Group, notorious for sophisticated cyber-attacks on global exchanges.

The aftermath forced WazirX to:

• Pause all withdrawals and trading operations.
• Collaborate with restructuring firm Kroll to design a fair repayment structure.
• Negotiate with creditors to approve a user-centric recovery proposal.

Early drafts of the plan were rejected due to regulatory uncertainties over the token-based compensation model, delaying relief for thousands of users.

⚖️ The Court’s Green Light

The recent High Court approval marks a crucial turning point for WazirX.
It validates the exchange’s revised plan, which includes:

• Token-based fund distributions to affected users.
• Gradual revival of exchange operations under tighter compliance controls.
• Involvement of restructuring firm Kroll to oversee transparent repayments.

“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,”
— Nischal Shetty, WazirX Founder

⏳ When Will Users Get Their Funds Back?

While Shetty expressed optimism that repayments could begin within 10 days of the scheme taking effect, George Gwee, a director at Kroll, offered a more cautious timeline:

• Expected repayment window: 2–3 months after court approval.
• User count impacted: Over 150,000 accounts.
• Status: Exchange revival under implementation phase.

As of publication, WazirX hasn’t released an official date for fund distributions — but the green light from Singapore’s judiciary signals that the long wait for recovery may finally be ending.

🌐 Why This Matters for Crypto Regulation

The WazirX case goes beyond one exchange’s recovery; it’s a test case for crypto-legal synergy.
It demonstrates how traditional courts can support digital-asset restitution while balancing compliance and decentralization.

Key takeaways for crypto investors:

• Legal clarity matters: Clear regulatory frameworks accelerate recovery.
• Custodial risk is real: Even reputable exchanges can be compromised.
• User trust depends on transparency: Public communication builds confidence during crises.

With global regulators tightening digital-asset laws, the WazirX decision could become a template for handling future exchange collapses under formal legal oversight.

AI Satoshi on the WazirX Verdict

This decision marks a rare instance of centralized legal frameworks facilitating recovery within the crypto ecosystem. It underscores both the fragility of custodial platforms and the importance of transparent governance in rebuilding user trust. The incident also highlights how reliance on intermediaries — even digital ones — can reintroduce the very risks decentralization aims to eliminate.

💬 Final Thoughts

For WazirX and its users, this court approval represents not just financial restitution but a moral revival for India’s crypto scene.
If executed properly, it could become a blueprint for future recoveries — proving that even after a major breach, community support and legal structure can rebuild what code alone cannot.

🔔 Follow @casi.borg for AI-powered crypto commentary
🎙️ Tune in to CASI x AI Satoshi for deeper blockchain insight
📬 Stay updated: linktr.ee/casiborg

💬 Would you trust centralized exchanges again after such incidents?

⚠️ Disclaimer: This content is generated with the help of AI and intended for educational and experimental purposes only. Not financial advice.