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Singapore High Court has accepted WazirX’s reorganization plan, which will allow the exchang to repay 75% to 80% of the stolen customer monies. Despite the court’s decision, many victims remain suspicious!
A Singapore High Court has approved a payment restructuring plan for the victims affected by the WazirX crypto scam. The restructuring plan was approved on Jan. 23, 2025, under the Company’s Act. 1967, which regulates and sets guidelines on the operation of companies in India. The Singapore High Court also ruled that there was no foul play done by WazirX regarding the hack, as per Crowdfund Insider.
On Jul. 18, 2024, WazirX lost over $234 million in multiple crypto assets. The attack was traced back to North Korea’s state-sponsored hacking group, the Lazarus Group. The same group was also involved in the CoinEx hack back in Sept. 2023, where it scammed the exchange out of $54 million.
WazirX’s restructuring plan
WazirX’s restructuring plan, which has received the green light from the Singapore High Court, will prioritize creditor recovery and prevent liquidation. It proposes to return 75% to 80% of the value of the lost customer funds through an orderly, court-approved process.
The user voting process, which will play a significant role, spans over the next three-month timeframe. If the majority approves, the exchange will distribute liquid assets within 10 business days, including any gains from the recovery of the crypto markets since the attack.
WazirX, in a bid to help users recover their losses, issued recovery tokens — a form of digital credit granted to users who were affected. These tokens indicate to users how much they are owed and will also give them a share of WazirX’s future profits as well as a share of any stolen funds that may be recouped.
The exchange will also look to repurchase these tokens over three years from its profits, allowing users to recoup the majority of their losses while keeping the exchange operational.
The crypto exchange has recovered some stolen funds, freezing $3 million worth of Tether (USDT), and is working with authorities in the U.S., Japan, and South Korea to retrieve further assets involved in the attack. The restructuring process will be carried out in accordance with the Singapore Scheme of Arrangement, which enables companies to formulate a formal agreement with their creditors.
If the plan is executed as described, the crypto exchange can operate and restore its reputation with its user base.
Community not on board
Many victims of the crypto exchange scam do not have faith in the company’s promise to deliver. A discord and X-based community of WazirX users named “Justice for WazirX users” is criticizing the CEO and founder, Nischal Shetty. The community says the user voting process should not require more than three months. However, the CEO is allegedly asking for more than four months to convene the voting process.
This article first appeared at crypto.news
