2024

Arkham

Cyber

WazirX

Indian cryptocurrency exchange WazirX received approval from the Singapore High Court for its restructuring plan, which seeks to repay customers affected by a major cyberattack in July 2024.
The court’s decision enables WazirX to move forward with recovering user funds and preventing liquidation.
WazirX’s parent company, Zettai, filed the restructuring proposal under the Singapore Companies Act 1967. The plan allows the exchange to repay users through a combination of direct token distributions and a newly introduced recovery token system. WazirX estimates that users could recover up to 80% of their account balances.
According to the court, WazirX was not found to have committed any misconduct in relation to the attack. The judgment explains that the restructuring is preferable to liquidation, with the court noting that it provides a faster resolution and better outcomes for affected users.
The plan is structured under a Singapore Scheme of Arrangement, which facilitates agreements between companies and their creditors. WazirX will conduct a user vote and independent audit in the coming months.
If approved by the majority, payouts will begin within 10 days. Initial distributions will include liquid assets, and recovery tokens will cover any remaining claims. These tokens are tied to future platform profits, allowing users to benefit as the exchange generates revenue and recovers additional stolen assets.
WazirX has already frozen $3 million in USDT tied to the attack and continues to collaborate with authorities in the U.S., Japan, and South Korea to recover more funds. As part of its long-term strategy, the exchange plans to launch a decentralized trading platform, which will help generate additional revenue for repurchasing recovery tokens. Zettai also committed to a three-year buyback program to further repay users.
In November, Delhi Police arrested a suspect from Bengal involved in the $235 million hack. <a href="https://financefeeds.com/wazirx-hacker-moves-stolen-funds-via-tornado-cash/" rel="noopener noreferrer nofollow">WazirX</a>&nbsp;cooperated with the investigation by providing necessary hardware, KYC records, and transaction logs. The Indian Cyber Crime Coordination Centre (IFSO) independently confirmed that WazirX’s security measures remained uncompromised, as the hack stemmed from external deception.
The hacker moved stolen funds using the U.S.-sanctioned crypto mixer&nbsp;<a href="https://financefeeds.com/north-korean-hacker-moves-11-million-from-wazirx-stolen-crypto/" rel="noopener noreferrer nofollow">Tornado Cash</a>. Onchain analytics platform Arkham reported that more than 61,500 ether ($161 million) has been transferred to the mixer so far.
Amid the fallout,&nbsp;<a href="https://financefeeds.com/wazirx-sets-66-cap-on-inr-withdrawals-as-crypto-insufficient/" rel="noopener noreferrer nofollow">WazirX founder Nischal Shetty</a>&nbsp; repeatedly shifted blame for the hack. Initially, Shetty claimed that a mistake by custodian Liminal led to the breach—a claim that Liminal denied. In August, Shetty shifted focus, suggesting that Binance, which he said held a majority of WazirX parent Zettai Labs’ funds, restricted WazirX’s ability to repay affected customers.
Forn its part,&nbsp;<a href="https://financefeeds.com/wazirx-blames-binance-for-restricting-repay-of-hack-victims/" rel="noopener noreferrer nofollow">Binance</a>&nbsp;has distanced itself from WazirX, reiterating last week that it does not own, control, or operate the exchange. Binance claimed that a contract between the two companies was never finalized due to “Zettai’s failure to perform its obligations.”
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WazirX to start payouts in 10 days after $235M hack

FinanceFeeds

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