Outlook Business Desk
In July 2024, WazirX faced a major cyberattack, allegedly by North Korea’s Lazarus Group. Exploiting the platform’s Multi-signature wallet, hackers stole around $234.9 million (₹2,000 crore). The attack also led to WazirX suspending operations and leaving users unable to access funds for over a year.
Now, the Singapore’s High Court has approved a restructuring plan by WazirX's parent entity Zettai Pte Ltd. An overwhelming majority of creditors, accounting for nearly 95% of total claims, voted in favour, signalling strong support for the fund recovery strategy.
The court ruling ends months of corporate recovery efforts following one of company largest hacks that halted WazirX. Founder of WazirX, Nischal Shetty described it as a key milestone and confirmed that platform operations could restart within ten business days.
Before users can access their accounts and check balances, Zettai Pte Ltd must lodge the court-approved order with Singapore’s Accounting and Corporate Regulatory Authority (ACRA).
Once the court order is officially lodged, the restructuring scheme applies to all creditors, even those who opposed it. At this stage, Zettai can begin distributing funds, issuing recovery tokens and preparing to relaunch the platform.
WazirX’s recovery plan combines direct payouts in cash or cryptocurrency with recovery tokens. These tokens give users a stake in future profits, buybacks and revenues, ensuring both immediate and long-term participation in the platform’s revival.
Recovery tokens are tradeable instruments representing claims on future profits, revenues, and recovery efforts of the rebuilt platform. Periodic buybacks of these tokens may occur, funded from platform profits. Meanwhile, WazirX has partnered with BitGo to enhance fund security before relaunch.