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- WazirX may reopen for business after a nine-month halt once the Singapore court signs off on the recovery plan.
- The exchange plans to compensate users with recovery tokens, covering up to 80% of lost balances.
- Indian Supreme Court dismisses case, clearing the way for WazirX’s restructuring and recovery plan.
WazirX, the cryptocurrency exchange that was targeted by hackers in July 2024, might resume operations after the court ruling in Singapore. The firm stated in an update to X on the 21st of April that the company may resume operations if the Singapore High Court acknowledges its plan to recover from the nine-month-long shutdown and compensate affected users. The ruling due on the 13th May will be crucial to pave the way for the recovery process of the platform.
The plan has been made by the WazirX parent company, Zettai PTE Ltd. Through which the exchange plans to come out of the $234 million hack carried out by North Korea’s Lazarus Group. The company stated that trading and withdrawal might commence within 10 business days from the time that the court grants its approval. Moreover, the company intends to implement a phased revival strategy. Which does not change the timeline for a relaunch in April-May 2025.
WazirX Recovery Token Plan
To compensate for the loss, WazirX is proposing to issue some recovery tokens to the affected users. These will be redeemable in the future using the profit generated from the platform. And are estimated to make up 75-80% of the user balances at the time of the hack. It may take 36 months to regain full repayment, which depends on the exchange results in the upcoming year.
At the beginning of the year, the recovery plan was also subject to a great deal of controversy among users. Experts expressed concern over the fact that the proposal wanted to link the payout to the performance of a new decentralized exchange. As they deemed this unfair.
Some users also considered that rejection of the plan could lead to a delay in compensation that could take five years. Nevertheless, the proposal officially received more than 90% of the vote in favor during the 10-day period in March 2025.
Final Decision Awaits
However, 54 users in India filed a legal case in court trying to prevent the recovery plan’s implementation. But on April 16, this case was rejected by the Supreme Court of India, arguing that the crypto relativity case does not fall under the jurisdiction of the court. Thus, the legal pressure vanishes, leaving WazirX facing only the final judgment of the Singapore court to decide its future.
The strategic decision that will be taken on May 13 will define the future of WazirX. The restructuring plan is likely to be approved soon, and it will lead to the revival of the exchange. This will be good news for users and a major step towards the recovery of the hacked site.
