The Singapore High Court has taken a major step toward justice for users affected by the $235 million hack of WazirX by granting the crypto exchange approval to convene a Scheme Meeting with creditors. This approval is a crucial step in the exchange’s restructuring process and its commitment to compensating users for their losses.
A New Chapter in the Recovery Effort
In January 2025, this court decision marked a pivotal moment for WazirX, allowing the exchange to move forward with its proposed recovery plan. This comes after a four-month moratorium granted in September 2024, which gave WazirX the time to devise a structured approach for user repayment.
Token-Based Compensation and Buyback Program
A cornerstone of the recovery plan is the issuance of recovery tokens to users impacted by the hack. These tokens, which can be traded on the secondary market, are aimed at reducing financial losses during the recovery period. Additionally, WazirX plans to implement a token buyback program designed to bolster the value of these tokens, offering a more substantial return to affected users.
International Collaboration for Asset Recovery
WazirX is also working with international authorities to recover stolen assets, further strengthening its compensation plan. So far, the exchange has successfully frozen $3 million in USDT directly tied to the hack. Efforts to track and reclaim additional funds remain ongoing, showcasing the exchange’s determination to address the situation comprehensively.
Next Steps: Creditors to Vote
The Scheme Meeting will enable creditors to vote on the proposed restructuring plan. Approval of this plan could lead to a more efficient and equitable repayment process. However, if the plan is rejected, liquidation will become the alternative—a route that is expected to be slower and less rewarding for those affected.
Beyond compensation, WazirX’s recovery efforts also include restarting its platform, signaling a commitment to rebuilding user trust and restoring its position in the crypto market.
Gratitude and Patience
In a recent update shared on their X account, WazirX expressed gratitude for the patience and support of its users, promising more details on the voting process soon.
The road to recovery may still have hurdles, but WazirX’s proactive measures, backed by court approval, signal a significant step forward for the exchange and its community.
Disclaimer: This content does not constitute trading or investment recommendations. It’s essential to conduct your own research before purchasing any cryptocurrency or investing in any services.
