WazirX Restructuring Approved by Singapore Court After $234M Hack
The Singapore High Court has approved WazirX’s restructuring plan following a devastating $234 million cyberattack that shook the cryptocurrency community in July 2024. This approval brings relief to thousands of affected users who have been waiting for clarity on asset recovery. The court sanctioned the creditor-approved restructuring scheme after 95.7% of voting creditors supported the plan in August 2025. The exchange can now move forward with structured asset distribution and platform reopening.
Singapore Court Sanctions WazirX Restructuring Scheme
The hack occurred on July 18, 2024, resulting in approximately $234.9 million in stolen investor funds. The Indian cryptocurrency exchange immediately suspended operations, leaving users unable to access their assets. Security experts later attributed the breach to North Korea’s Lazarus Group, a notorious hacking organization known for targeting cryptocurrency platforms.
The court approval represents a turning point for WazirX and its user community. Token distributions will begin within 10 business days of the scheme taking effect. This timeline provides affected users with concrete expectations for asset recovery. The restructuring plan underwent months of negotiations between the exchange and creditors before reaching this milestone.
How the WazirX Restructuring Plan Works
The approved scheme establishes a framework for returning assets to eligible creditors. WazirX will implement token-based distributions that match users to their verified claims. The platform plans to gradually reopen trading services alongside the distribution process. This phased approach aims to restore confidence while ensuring operational stability.
The creditor vote showed overwhelming support, with 94.6% approval by value. This consensus demonstrates the community’s commitment to recovery through cooperation rather than litigation. The structured process provides greater certainty than alternative approaches like bankruptcy proceedings. Users can expect transparent communication as the exchange moves through implementation phases.
WazirX Recovery Timeline and User Impact
The court-sanctioned WazirX restructuring plan includes specific milestones for platform revival. Operations will restart within 10 days, allowing users to access their accounts. Initial token distributions will follow shortly after, providing the first wave of asset recovery. The exchange has committed to ongoing updates throughout the process.
Affected users should prepare for a gradual recovery rather than immediate full restitution. The restructuring balances available resources with creditor claims to maximize returns. Recovery tokens will play a role in the distribution mechanism. Users must stay informed about claim procedures and verification requirements to participate fully.
Lessons from the WazirX Restructuring Process
The Singapore court’s decision sets a precedent for handling major cryptocurrency exchange failures. The collaborative approach between the platform and creditors proved more effective than adversarial proceedings. This case highlights the importance of structured legal frameworks in the crypto industry. Exchanges and users alike can learn from the restructuring methodology employed here.
The approval also underscores the need for enhanced security measures across the cryptocurrency sector. While the WazirX restructuring approved plan addresses the aftermath, prevention remains paramount. Users should consider platform security features when choosing exchanges. Industry-wide improvements in custody solutions and threat detection can reduce future risks.
Conclusion
The approved plan provides a roadmap for WazirX’s recovery and eventual return to normal operations. Users can expect increased transparency as the exchange implements court-mandated procedures. The platform must rebuild trust while executing complex distribution logistics. Success will depend on careful execution and ongoing communication with stakeholders.
This resolution demonstrates that meaningful recovery is possible after major security breaches. The WazirX restructuring approved by the Singapore court offers hope to victims of similar incidents. As the cryptocurrency industry matures, legal frameworks continue to evolve to better protect users. The coming months will reveal how effectively the plan translates into actual asset recovery for affected individuals.
