The Singapore HC has approved WazirX Scam repayment of $235 million to its victims. This embarks a turning point in exchange’s recovery plan.
Indian cryptocurrency exchange WazirX has taken an important step in gaining trust & financial security for its users after the major breach in July 2024. The Singapore high court has approved WazirX scam repayment plan, showing the turning point of exchange’s recovery efforts.
The Hack: The Major Setback to WazirX Users
In July 2024, Wazirx became a target of a major hack losing $235 million of its users. This hack was done by a hacking group, Lazarus established in North Korea. This hack led caused an economical trouble for thousands of users. The hack also exposed faults in the crypto trading & highlighted the continuous fear from cybercriminals.
The Court’s Approval: A Milestone for User Recovery
On January 23, 2025 the Singapore HC approved WazirX scam repayment plan under Companies Act of 1967. This court-done settlement tries to help the affected users to recover a portion of their investments while avoiding the platform’s closure.
Zettai, WazirX’s parent company, filed a request that got approved. The updated plan tells about a new repayment plan that could bring up to 75% to 80% of user’s balance. This will be mostly done by token distribution and other creative financial procedures.
No Evidence of Misconduct
At the time of court hearing, it was seen that there were no proof of any misconducting from WazirX for the breach. According to the cooperative investigation by U.S., Japan & South Korea, the cyberattack was done by the Lazarus group. This outcome cleared WazirX name from the blame & altered their stance to recovery.
The Repayment Plan: How Users Will Be Compensated?
WazirX scam repayment plan is been conducted under Singapore Scheme of Arrangement. It is a legal documentation made to allow agreements between businesses and investors. Here’s the report how the repayment strategy operates:
Initial Token Distribution
WazirX scam repayment would be started repaying the total monies to the affected users within the next 10 business days. The repayment will be based on user-verified claims to ensure fair and transparent procedure.
Recovery Tokens
Alongside with the WazirX scam repayment, WazirX will also launch a recovery token to symbolize unpaid claims. These tokens would allow users to participate in WazirX’s future earnings and recovered assets. The tokens will be repurchased from WazirX’s earnings from a suggested decentralized exchange at a regular interval.
3-Year Buyback Program
Zettai has agreed to a 3-year buyback program for recovery tokens. The project will be funded by profits and any funds recovered from the hack. This project shows WazirX’s ongoing dedication to its users and recovery procedures.
Voting and Audit Process
User participation is very important for the WazirX scam repayment task. WazirX will use a polling system to ensure the transparency and fairness. This procedure is expected to be completed in next 3 months. If the majority voted in favor of the plan, the process will soon be implemented.
To ensure transparency, a trustworthy third-party will be involved and monitor the entire process. This evaluation will ensure that the recovery plan is carried out as thought and the users funds are distributed fairly.
Recovery Efforts & Future Plans
WazirX has been active in working with international authorities to recover stolen funds. On January 17, 2025, the exchange successfully stopped $3 million in USDT related to the hack. Additional asset recovery efforts are ongoing, with support from governmental agencies in the United States, Japan, and South Korea.
As part of its recovery and growth strategy, WazirX intends to launch a decentralized exchange. This initiative aims to strengthen the platform’s adaptability to future cyber threats while expanding income sources. The decentralized exchange will be vital for funding the recovery token buyback program and ensuring the platform’s sustainability.
Why Restructuring Is Better Than Liquidation?
During the court hearing, the Singapore High Court stated the importance of transforming over liquidation. Financial projections from Kroll, a third-party auditor, revealed that fast resolution through changing would result in better outcomes for users. Liquidation, on the other hand, would have caused significant losses and added uncertainty for affected users.
Conclusion
The Singapore High Court’s approval of WazirX’s changing plan gives hope for the exchange and its users. WazirX is building a stronger and more secure future by prioritizing user recovery, introducing innovative solutions such as recovery tokens, and committing to long-term growth strategies.
As the cryptocurrency industry evolves, the WazirX scam repayment serves as a reminder of the value of perseverance, collaboration, and transparency. For the thousands of users affected by the hack, this plan represents the start of their path to financial recovery and restored trust in the cryptocurrency ecosystem.
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