The Singapore High Court has approved a restructuring plan for crypto exchange WazirX, paving the way for its return to operations following a 2024 cyberattack that cost over $230 million. The decision represents a rare instance of a judicially supervised recovery within the often-volatile cryptocurrency sector.
WazirX, whose parent company is Zettai Pte. Ltd., plans to restart platform operations within 10 business days of the plan becoming legally effective. This timeline aims for a full resumption before the end of October.
The court order followed an August re-vote where 95.7% of creditors by number and 94.6% by value backed the proposed restructuring scheme. This broad support underscores a collective effort to revive the platform rather than pursue liquidation.
Nischal Shetty, WazirX founder, confirmed the imminent reopening. He stated the goal is to restore user access and initiate the first distributions to accounts affected by the hack.
To bolster its asset security and rebuild trust, WazirX has partnered with BitGo, a U.S. company specializing in secure storage services for institutional platforms. This alliance aims to meet new regulatory and security standards.
The recovery plan also includes the launch of a decentralized exchange (DEX) and the issuance of recovery tokens. These tokens will be tradable on the market. Future company revenues will be used to periodically repurchase these tokens, gradually compensating affected users.
WazirX suffered its major attack in July 2024, attributed to the North Korean Lazarus group. The hackers exploited vulnerabilities through the interception of private keys, leading to the theft of over $230 million.
A dispute arose between WazirX and its custody provider, Liminal, with each side blaming the other for security failures. The stolen funds were subsequently laundered using Tornado Cash, a protocol that obfuscates transaction trails, significantly reducing the chances of a full asset recovery.
This court-approved restructuring could establish a significant precedent for the global cryptocurrency ecosystem. It offers an alternative model for resilience in an industry frequently beset by hacks and collapses, favoring legal recovery over business cessation.