WazirX Prepares Comeback as Court Decision on Recovery Plan Approaches

Highlights:

• WazirX plans to restart services, awaiting a court decision on May 13.
• Affected users may receive recovery tokens, covering 75%-80% of balances.
• Supreme Court dismisses WazirX users’ plea, directs them to seek help from regulators.

WazirX, the Indian crypto exchange hacked for $234 million last July, is preparing to resume its services. This depends on a court decision on May 13 about its plan to reorganize the company and pay back users.

The exchange stated:

“While we’ve worked to stay aligned with the previously shared timelines, court proceedings operate independently, and we respect that process.”

FAQ: What’s the current update on the restart of WazirX operations?

A: We understand the eagerness around the platform restart and truly appreciate your continued patience. Since the beginning, we have communicated that the First Distribution and restart would occur within the… pic.twitter.com/VJtfX4EBLh

— WazirX: India Ka Bitcoin Exchange (@WazirXIndia) April 21, 2025

WazirX announced on April 21 that, pending approval from Singapore’s High Court, its parent company, Zettai PTE Ltd, will be able to restart the exchange and begin reimbursing impacted users within 10 business days. In July last year, WazirX was hacked by North Korea’s Lazarus Group, who stole $234 million worth of crypto from a Safe Multisig wallet. Because of this, WazirX had to stop all crypto and cash withdrawals.

Since then, the exchange has been working on a court-approved plan to return users’ funds and restart its platform. Zettai has finished all the needed steps so far, and the next important step is a court hearing.

The company said:

“This hearing is essential for the Scheme to become legally effective. While we’ve worked to stay aligned with the previously shared timelines, court proceedings operate independently, and we respect that process.”

Court-Approved Recovery Plan

The proposed plan would provide affected users with recovery tokens, which can be redeemed through the platform’s profits over time. These tokens are expected to cover 75% to 80% of account balances at the time of the hack. Full repayment could take up to 36 months, depending on the platform’s performance. WazirX cautioned that if creditors rejected its recovery plan, repayments from the $235 million hack might be postponed until 2030.

When WazirX shared the plan in February, many users criticized it because repayments depended on a new decentralized exchange’s success. They felt it was unfair, especially with the warning of a five-year delay if rejected. In March, over 90% of creditors, holding more than $195 million in claims, voted in favor of the restructuring plan.

“We understand the eagerness around the platform restart and truly appreciate your continued patience,” WazirX said. The platform reiterated its aim to restart services between April and May 2025.

Supreme Court Rejects WazirX Hack Victims’ Plea, Cites Crypto Policy Limits

On April 16, the Supreme Court of India rejected a petition filed by 54 hack victims who sought legal action against WazirX, Shetty, Binance, and Liminal. They also requested an audit of WazirX’s accounts. Justices B.R. Gavai and Augustine Masih rejected the petition, stating that the court couldn’t decide on the case because it involved crypto policy, which is beyond their authority. Gavai and Masih suggested that the petitioners approach a regulatory body or another appropriate authority instead.