WazirX must pay back 80% of stolen funds, court orders

The High Court of Singapore has accepted the Wazirx reorganization plan, which will allow the exchange to reimburse 75% to 80% of the funds of stolen customers. Despite the court’s decision, many victims remain suspicious!

A high Singapore court has approved a payment restructuring plan for the victims affected by the Wazirx Crypto scam. The restructuring plan was approved on January 23, 2025 Business act. 1967which regulates and defines guidelines on the operation of companies in India. The High Court of Singapore also ruled that there was no unfair game made by Wazirx concerning the hack, about Crowdfund Insider.

On July 18, 2024, Wazirx lost $ 234 million in several cryptographic assets. The attack was traced by the hacking group sponsored by the state of North Korea, the Lazare group. The same group was also involved in the Hack Coine In September 2023, where he scanned the exchange on $ 54 million.

Wazirx restructuring plan

Wazirx’s restructuring plan, which has received the green light from the High Court of Singapore, will hierarch the recovery of creditors and prevent liquidation. It proposes to return 75% to 80% of the value of customer funds lost through a process ordered by the court.

The user voting process, which will play an important role, extends over the following three months. If the majority approves, the exchange will distribute liquid active Within 10 working days, including the gains in the resumption of cryptographic markets since the attack.

Wazirx, with the aim of helping users recover their losses, has issued a recovery tokens – A form of digital credit granted to affected users. These tokens indicate to the users how much they are and will also give them a share of the future benefits of Wazirx as well as a part of any stolen fund which could be recovered.

The exchange will also seek to buy these tokens over three years from its profits, allowing users to recover the majority of their losses while keeping the operational exchange.

The Crypto Exchange has recovered stolen funds, freezing for $ 3 million in attachment (USDT), and works with authorities in the United States, Japan and South Korea to recover other assets involved in the attack. The restructuring process will be carried out in accordance with the Singapore arrangement program, which allows companies to formulate an official agreement with their creditors.

If the plan is executed as described, the exchange of crypto can work and restore its reputation with its user base.

Community not on board

Many victims of the crypto exchange scam do not trust the company’s promise to deliver. A discord and a community based on Wazirx users named “Justice for Wazirx users“Critique the CEO and founder, Nischal Shetty. The community claims that the user voting process should not require more than three months. However, the CEO will ask for more than four months to convene the voting process.