WazirX Users Get 85% Payout as Court Approves Restructuring Plan

WazirX, one of India's largest cryptocurrency exchanges, has secured a critical legal victory as Singapore's High Court approved its revised restructuring plan, paving the way for the platform to resume operations and begin repaying users affected by a $234 million hack in July 2024. The approval, announced on October 13, 2025, follows months of negotiations, revisions, and a re-vote by creditors, with 95.7% of voting creditors-representing 94.6% by value-supporting the schemeWazirX gets Singapore court nod for restructuring scheme, to restart operations in 10 days^[1].

The court's decision marks a turning point for WazirX, which had faced prolonged uncertainty after its initial restructuring proposal was rejected in June 2025 due to regulatory concernsWazirX Refund & Fund Recovery (2025): Eligibility, Process^[5]. The revised plan, now sanctioned with modifications, allows the exchange to reorganize its debts under a court-supervised "Scheme of Arrangement," avoiding a lengthy liquidation process that could have delayed user recoveries until 2030WazirX Refund & Fund Recovery (2025): Eligibility, Process^[5]. CEO Nischal Shetty called the approval "one of the fastest restructurings in the global crypto industry," emphasizing that operations will restart within 10 business days of the scheme's legal effectivenessWazirX Wins Singapore Court Nod for Restructuring Scheme: CEO^[4].

Under the plan, affected users are expected to recover up to 85% of their pre-hack portfolio values in the first payout, with the remaining 15% to be distributed over subsequent years via Recovery Tokens-a tradable asset tied to WazirX's future profits and asset recoveriesWazirX Users to Reclaim $235M After Court Restructuring Approval^[6]. The exchange has partnered with BitGo, a leading digital asset custodian, to enhance security and rebuild trust after the breach, which was attributed to North Korea's Lazarus GroupWazirX gets Singapore court nod for restructuring scheme, to restart operations in 10 days^[1].

The court's approval also resolves jurisdictional disputes that had complicated the recovery process. While Indian courts dismissed petitions related to the hack, Singapore's High Court emerged as the final authority, ensuring a uniform approach for both domestic and international usersWazirX Users to Reclaim $235M After Court Restructuring Approval^[6]. However, challenges remain. Some creditors, including CoinSwitch, continue legal battles to recover frozen assets, and the success of the Recovery Token model hinges on WazirX's ability to regain trading volume and profitabilityWazirX moves to repay users as Singapore court approves recovery plan^[2].

With operations set to resume by late October, WazirX faces the daunting task of restoring user confidence. Thousands of investors, many in India, have been unable to access their funds for over a year, and skepticism persists about the platform's long-term viabilityWazirX moves to repay users as Singapore court approves recovery plan^[2]. Shetty has pledged to prioritize transparency and timely disbursements, but market observers stress that full recovery will depend on consistent execution of the plan.

As the exchange prepares for its relaunch, the case underscores the fragility of crypto infrastructure and the role of cross-border legal frameworks in crisis resolution. For now, WazirX's survival hinges on its ability to deliver on promises of security, accountability, and user restitution.