WazirX Secures Landmark Court Approval for $234 Million Hack Recovery Plan
In a pivotal development for the crypto exchange WazirX, Singapore's High Court has granted approval for its comprehensive restructuring plan. This crucial decision clears a significant hurdle, paving the way for the platform to begin the arduous process of repaying users who collectively lost $234 million in a major hack that occurred in July 2024.
Creditor Confidence Paves the Way
The court's endorsement follows a strong show of confidence from affected account holders. In an August re-vote, a staggering 95.7% of participating scheme creditors, representing approximately $196 million in approved claims, cast their votes in favor of the revised plan. This overwhelming support was instrumental in WazirX successfully presenting its case to the Singapore court. The initial hack, which exploited a Safe Multisig wallet, led to the freezing of crypto and rupee withdrawals as WazirX explored legal avenues to address the substantial user losses.
The Repayment Blueprint and What's Next
Under the newly approved plan, users are expected to recover a substantial portion of their lost funds, potentially up to 55%. This recovery will be facilitated through a combination of immediate liquid payments and "Recovery Tokens," which represent remaining claims to be fulfilled over time as the company re-establishes its financial stability. WazirX has indicated that the first wave of payouts, distributed in stablecoins like USDT, will commence within 10 business days once the scheme officially takes effect. This restructuring also involves a strategic shift, transferring part of the repayment responsibility to Indian entities to ensure compliance with local regulations. It's worth noting that the path to approval was not straightforward; an earlier version of the scheme was rejected by the court due to concerns regarding its structure and oversight, necessitating a revised proposal and a fresh vote from creditors.
