WazirX Moratorium Extended to June 6 for 85% Fund Recovery Plan Review

The Singapore High Court has extended the moratorium on WazirX, a prominent cryptocurrency exchange, until June 6. This decision comes as the court continues to review a user-backed plan aimed at recovering 85% of the funds stolen during a recent hack. The extension provides additional time for the court to thoroughly evaluate the proposed recovery plan, which has been put forth by a group of affected users. This development is significant as it underscores the ongoing efforts to mitigate the financial impact of the hack on WazirX users. The court's decision to extend the moratorium reflects the complexity of the case and the need for a comprehensive review of the recovery plan. The plan, if approved, could potentially return a substantial portion of the stolen funds to the users, offering some relief amidst the ongoing legal proceedings. The extension also highlights the importance of legal frameworks in addressing cybersecurity breaches and ensuring that users are adequately compensated for their losses. As the court continues its review, the outcome of this case will be closely watched by the cryptocurrency community, as it sets a precedent for how similar incidents are handled in the future.

WazirX's restructuring plan, which aims to compensate users affected by the July 2024 hack, is now under court review. According to WazirX, a strong 93.4% of users supported the proposal, which outlines a potential distribution of up to 85% of users’ stolen funds. If approved, the company says distributions could begin within 10 business days. The hack, which occurred in July 2024, was one of the largest in Indian crypto history, with around ₹2,000 crore worth of assets (approximately $230 million) stolen overnight. The exchange froze nearly 55% of users’ holdings and halted all trading activity to contain the damage, leaving thousands locked out of their funds and shattering user confidence.

While the restructuring plan offers a path forward, concerns remain. The proposal currently covers only 85% of lost assets, with no clear timeline for the remaining 15%. Many users remain frustrated about the platform’s delayed response and the uncertainty that still lingers. Until the next court decision, the wait continues, but for the first time in months, there’s real hope on the horizon. The latest update from WazirX has injected cautious optimism into its user base, as the court's review of the recovery plan continues. The outcome of this case will be crucial in determining the future of WazirX and setting a precedent for how similar incidents are handled in the cryptocurrency community.