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- WazirX secures a Singapore court extension in $234M hack fallout, delaying final decision on restructuring.
- Over 90% of affected users backed WazirX’s proposed recovery plan despite criticism over the voting platform used.
- The platform remains offline nearly a year after a North Korean-linked cyberattack disrupted operations and user funds.
WazirX has secured a crucial legal extension from a Singapore court as it pushes forward with restructuring plans following a major security breach. The Indian cryptocurrency exchange will have added time to provide their arguments on a possible Scheme of Arrangement.
The moratorium is initially scheduled to lapse on June 6, 2025, but it will now continue until the court decides to complete its review of the case. The delay temporarily allows WazirX legal immunity against creditors as the exchange recovers losses of $234 million last year incurred in an exploit.
North Korean hackers have been linked to the breach that caused WazirX to stop operations and license content for many users. The platform has since designed a recovery plan, which will involve legal restructuring and a relief plan for its affected users.
WazirX claims that the Singapore court ruling gives it a chance to present other evidence to reinforce the scheme. It also sets aside any conclusive determination of the plan approval until all the arguments are considered and reviewed by the court.
Overwhelming User Support Amid Voting Concerns
In addition to the legal extension, WazirX conducted a vote concerning the restructuring plan on March 19 and March 28. Through the Kroll Issuer Services site, more than 141,000 users whose claims were accepted and amounted to almost 196 million dollars were involved in the procedure.
The proposal passed with a landslide victory, with more than 90 percent of the participating users voting affirmatively. Nevertheless, not all critics were convinced of the transparency of the vote, considering that WazirX should have employed an independent site instead of one linked with the exchange.
Though there is support, the users have still not gained access to the complete services, and the court has reached no final decision. WazirX has acknowledged that it will proceed with the second step of its recovery process upon the court’s direction.
Chainalysis reported that the attack on WazirX was part of a broader trend into 2024. The crypto industry lost 2.2 billion through hacks and thefts, which indicates a significant rise in vulnerability in the industry.
The new court’s ruling is a critical turning point for WazirX as it tries to normalize its operations and cover user losses. The future of the exchange is now dependent on the case of court proceedings that are ongoing in Singapore.
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