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>>Following a $234M Security Breach, WazirX Secures Court Approval for Major Restructuring

Following a $234M Security Breach, WazirX Secures Court Approval for Major Restructuring

crypthub

about 19 hours ago

Court Approval and Creditor Support

Singapore’s High Court approved WazirX’s restructuring plan, enabling the crypto exchange to repay users after a $234 million hack. The plan secured 95.7% support from 143,190 creditors, representing $196 million in claims. This overwhelming backing helped WazirX push its case through the court, marking a critical step in its recovery process. The approval follows a revised proposal after initial court rejections over structural concerns.

Hack Details and Recovery Mechanism

The 2024 hack exploited a Safe Multisig wallet, leading to frozen withdrawals and legal challenges. Under the approved plan, users may recover up to 55% of lost funds via immediate stablecoin payments or Recovery Tokens. These tokens represent future claims to be fulfilled as WazirX regains assets or generates revenue. The repayment process involves Indian entities to comply with local regulations, as highlighted during court proceedings.

Implementation and Next Steps

If effective, liquid asset distributions will begin within 10 business days, starting with USDT transfers. The exchange must finalize legal formalities, coordinate with regulators, and manage token redemptions. The plan aims to balance immediate payouts with long-term recovery, ensuring transparency and compliance while rebuilding trust with users.