Singapore Court Greenlights WazirX Plan, Users to Recover 55–85% of Lost Funds

The Singapore High Court has approved the debt restructuring plan of WazirX, the Indian cryptocurrency exchange that suffered a $234 million hack in July 2024, marking a pivotal step toward repaying affected users. The court's decision, announced on October 13, 2025, follows months of legal negotiations and a revised proposal that secured support from over 95% of participating creditors WazirX restructuring gets Singapore court nod, user fund recovery revealed^[1]. Under the approved plan, users are expected to recover between 55% to 85% of their lost funds, depending on the valuation of assets at the time of the breach WazirX Users to Reclaim $235M After Court Restructuring Approval^[2]. CEO Nischal Shetty hailed the ruling as a "milestone," emphasizing the team's commitment to rebuilding trust and resuming operations WazirX Restructuring Plan Gets Court Approval After^[4].

The hack, attributed to North Korea's Lazarus Group by a joint statement from the U.S., South Korea, and Japan Singapore Court Approves WazirX Restructuring Plan^[7], exploited vulnerabilities in WazirX's Safe Multisig wallet, forcing the exchange to halt withdrawals. The attack not only crippled WazirX's liquidity but also raised alarms about the security of India's growing crypto sector. The court-approved restructuring plan now allows the exchange to distribute recovery tokens and profit-sharing rights to users, while navigating regulatory scrutiny in Singapore, where its parent company, Zettai Pte Ltd., is based WazirX Court Approval User Repayments 234M Hack^[6].

The path to approval was fraught with challenges. WazirX's initial restructuring proposal was rejected in June 2025 due to concerns over token distribution under Singapore's proposed digital token service provider framework. A revised plan, routed through the exchange's Indian entity Zanmai Labs, gained overwhelming creditor support in August, enabling the court's final endorsement WazirX Restructuring Plan Gets Court Approval After^[4]. Despite optimism, repayment timelines remain uncertain. While Shetty suggested users could receive funds within 10 business days, restructuring firm Kroll's George Gwee cautioned delays of two to three months .

The market responded cautiously to the news. WazirX's native token, WRX, surged 21% in 24 hours, trading at $0.05513 with a market cap of $21.05 million WazirX Users to Reclaim $235M After Court Restructuring Approval^[2]. However, users remain wary. Kashif Raza, a crypto influencer, urged transparency to avoid further delays ahead of India's Diwali festival on October 20 WazirX restructuring gets Singapore court nod, user fund recovery revealed^[1]. Meanwhile, international cooperation to trace stolen funds continues, with $3 million in Tether (USDT) already frozen in a multi-jurisdictional effort WazirX Court Approval User Repayments 234M Hack^[6].

The ruling underscores Singapore's role as a regulatory hub for crypto restructuring, offering a template for cross-border insolvency cases. Legal experts note that WazirX's strategy highlights the importance of jurisdictional clarity in an industry still grappling with fragmented regulations . As the exchange moves toward implementation, the outcome will test its ability to balance user compensation, operational revival, and compliance with evolving global standards.