WazirX Looks to Make a Comeback as Court Decision on Restructuring and Compensation Approaches

The Indian digital currency platform WazirX is gearing up for a possible relaunch, awaiting an important ruling from Singapore’s High Court on May 13 concerning its restructuring and user reimbursement strategy.

The exchange, which was the victim of a $234 million vulnerability breach in July 2024, stated it could restart operations and initiate compensation for affected users within 10 business days, should the court greenlight its proposal.

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Zettai, WazirX Parent, Finishes Preparations Before Court Approval Hearing

In an update shared on April 21, the parent company of WazirX, Zettai PTE Ltd, announced it has completed all required actions in advance of the court’s approval hearing.

“This hearing is crucial for the Scheme to gain legal effectiveness,” the company remarked, underscoring its dedication to adhering to legal protocols despite potential court delays.

The significant exploit, linked to North Korean cybercriminals, compromised WazirX’s Safe Multisig crypto wallet, leading to a suspension of both crypto and fiat withdrawals.

In reaction, Zettai devised a restructuring strategy focused on distributing recovery tokens, which will be gradually bought back with the exchange’s future earnings. The objective is to restore 75% to 80% of users’ lost balances.

Earlier this month, more than 90% of the voting creditors endorsed the proposal, preventing a situation where reimbursements could have been postponed until 2030. The plan now awaits final court ratification before it can be set into motion.

“We recognize the excitement surrounding the platform’s revival and are sincerely grateful for your ongoing patience,” WazirX stated. The platform reiterated its aim to resume operations within the April-May 2025 timeframe.

FAQ: What’s the current update on the restart of WazirX operations?

A: We understand the eagerness around the platform restart and truly appreciate your continued patience. Since the beginning, we have communicated that the First Distribution and restart would occur within the… pic.twitter.com/VJtfX4EBLh

— WazirX: India Ka Bitcoin Exchange (@WazirXIndia) April 21, 2025

In the meantime, legal challenges persist. On April 16, 2025, India’s Supreme Court dismissed a petition from 54 victims of the exploit. The individuals were seeking legal recourse against WazirX, its co-founder Nischal Shetty, Binance, and the custody provider Liminal.

The justices determined that the matter fell outside of the court’s jurisdiction, advising petitioners to instead approach a regulatory authority.

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Indian Supreme Court Rejects WazirX Hack Legal Petition

As previously noted, the Indian Supreme Court has dismissed a petition from 54 victims of the WazirX hack in 2024, which resulted in the theft of ₹2,000 crore ($234 million) by North Korea’s Lazarus Group.

The court cited the absence of a well-defined regulatory framework for cryptocurrencies as the basis for rejecting the claims against WazirX’s management, Binance, and Liminal Custody.

Claimants accused the trading platform of negligence and inadequate security measures. However, the court indicated that the issue falls into the realm of policy-making rather than judicial intervention.

The petition sought a Special Investigation Team and a forensic audit. Nevertheless, the court suggested they resolve their concerns through regulatory entities like the RBI, SEBI, and CBI.

This ruling has reignited criticism of India’s position on digital currency, highlighting the inconsistency of imposing a 30% tax on crypto profits while providing minimal legal safeguards for investors.

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