WazirX's Legal Win Paves Path to Rebuilding India's Crypto Trust
The Indian cryptocurrency exchange WazirX has secured a pivotal legal victory as Singapore's High Court approved its revised debt restructuring plan, clearing the path for the platform to resume operations and begin repaying users impacted by a $234.9 million cyberattack in July 2024. The ruling, announced on October 13, 2025, marks a critical step in the exchange's recovery after months of legal negotiations and procedural revisions[1].
The court's approval followed a re-vote by creditors, with 95.7% of participating creditors-representing 94.6% of claims by value-supporting the updated plan[2]. This contrasts with an earlier rejection in June 2025, when the court raised concerns about regulatory compliance for token distributions under Singapore's evolving digital asset framework[3]. The revised plan, now court-sanctioned, routes repayments through WazirX's Indian subsidiary, Zanmai Labs, which is registered with India's Financial Intelligence Unit[5].
Under the restructuring, affected users are expected to recover up to 55% of their lost funds in USDT-equivalent value through a phased distribution model. The plan also allows WazirX to restart trading and withdrawal services within 10 business days of the court's ruling, with the first token distributions likely occurring by late October[1]. The exchange's Singapore-based parent company, Zettai Pte Ltd, will oversee crypto asset custody, while Zanmai Labs will handle fiat operations under Indian regulatory guidelines[1].
The hack, attributed to North Korea's Lazarus Group[4], exploited vulnerabilities in WazirX's multi-signature wallet protocols, draining funds and freezing user assets. While the exchange has since upgraded its security systems, the incident exposed systemic risks in cross-border crypto custody and compliance practices[1]. WazirX's CEO, Nischal Shetty, emphasized the court's approval as a "key milestone" in the platform's recovery, vowing to focus on "creating value for everyone"[3].
Despite the legal green light, challenges remain. Some creditors, including CoinSwitch, continue pursuing independent legal action to recover frozen assets[1]. Additionally, repayment timelines vary: While Shetty projected initial distributions within 10 days, restructuring firm Kroll's George Gwee estimated users may wait two to three months for full disbursements[5].
The restructuring also includes a hybrid repayment model, with 52% of recovered funds distributed as liquid crypto or cash and 48% as recovery tokens tied to WazirX's future earnings. Critics argue this structure locks users into the exchange's performance, potentially limiting gains from the recent crypto bull market. However, most users opted for the expedited plan over a full liquidation process, which could have delayed recoveries until 2030[5].
WazirX's revival has broader implications for India's crypto sector, which remains wary of centralized exchange risks. The platform's plans to partner with BitGo-a global custodian-and launch a decentralized exchange (DEX) aim to rebuild trust[4]. Yet, the hack's legacy underscores the need for stronger regulatory frameworks and asset protection measures in the region[1].
As WazirX moves toward operational restart, the exchange faces the dual challenge of fulfilling repayment promises and restoring user confidence. With Diwali approaching, some investors have urged Shetty to enable withdrawals before the festival, symbolizing a fresh start for India's crypto community[1]. Whether WazirX can deliver on its commitments will determine if this legal victory translates into a genuine recovery for its users.
Comentarios
Aún no hay comentarios