WazirX Awaits May 13 Court Decision to Resume Operations After $234M Hack

WazirX, a prominent Indian crypto exchange, is poised to resume operations following a significant cyberattack that occurred in July 2024. The exchange, which lost $234 million in cryptocurrency, is awaiting a crucial court hearing scheduled for May 13, 2025. This hearing, to be held in Singapore’s High Court, will determine the fate of WazirX’s restructuring proposal and user compensation plan.

The court’s decision is pivotal for Zettai PTE Ltd, the parent company of WazirX, as it seeks to restart the exchange and implement a compensation scheme for affected users. If the court approves the proposal, the exchange could resume operations and begin compensating users within 10 business days. This timeline is contingent on the court’s approval, as legal proceedings are subject to their own schedules and processes.

In April, over 90% of voting creditors endorsed WazirX’s post-hack restructuring plan, which includes the issuance of recovery tokens. These tokens are intended to be repurchased using the exchange’s net profits, potentially yielding 75% to 80% of users’ account balances at the time of the cyberattack. The exchange had previously warned that repayments could be delayed until 2030 if creditors did not approve the restructuring plan.

The legal landscape for WazirX has been complex, with the Supreme Court dismissing a petition filed by 54 victims of the hack. The petition sought legal action against WazirX, its CEO, Binance, and the custody provider Liminal. The court ruled that it lacked the authority to address the matter, as it pertains to crypto policy, and advised the petitioners to approach a regulatory body or other relevant authority.

WazirX has maintained open communication with its users, acknowledging their eagerness for the platform’s restart and expressing gratitude for their continued patience. The exchange had initially communicated that the first distribution and restart would occur within the April-May 2025 window, aligning with the current timeline.

The upcoming court hearing in May is a critical juncture for WazirX. A favorable decision could pave the way for the exchange to resume operations and compensate affected users, marking a significant step towards recovery from the cyberattack. The exchange’s ability to navigate the legal and regulatory challenges will be crucial in determining its future trajectory.