Indian cryptocurrency exchange WazirX is poised for a significant milestone as it prepares for a crucial court hearing on May 13, 2025, in Singapore. The hearing will determine the approval of the exchange’s restructuring and user compensation plan following a devastating $234.9 million hack in July 2024, attributed to North Korea’s Lazarus Group.
Background and Recovery Efforts
The cyberattack resulted in the loss of nearly 45% of user assets, prompting WazirX’s parent company, Zettai, to devise a comprehensive recovery strategy. The proposed plan includes:
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Initial Payouts: If the court sanctions the scheme, WazirX intends to commence the first distribution of funds within 10 business days from the effective date of the scheme.
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Recovery Tokens: To address remaining claims, the exchange plans to issue tradable “recovery tokens,” allowing users to benefit from future platform profits and recovered assets.
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Platform Relaunch: WazirX aims to restart operations, including the launch of a decentralized exchange (DEX), enhancing its service offerings and revenue streams.
The restructuring plan has garnered substantial support, with 93.1% of creditors backing the proposal. Zettai has completed all preparations for the upcoming court hearing, expressing confidence in the plan’s potential to restore user trust and the exchange’s viability.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments are volatile and risky. Always conduct your research before making any investment decisions.
