WazirX Secures Court Approval for $235M Hack Repayment

Customers affected by the 2024 attack on the WazirX exchange could receive their repayment after a high court in Singapore approved the platform’s restructuring plans. 

North Korean cybercrime group Lazarus launched an attack on WazirX in July 2024, wiping off over $230 million. As expected, several users, in panic, moved to withdraw their funds from the exchange. The high withdrawal volume led WazirX to freeze all funds and pause withdrawals.

Users’ whose funds were affected have been unable to receive a repayment since then. However, the crypto exchange has been working to secure approval from a Singapore court to repay users whose funds were frozen. WazirX required approval from Singapore because its parent company, Zettai, is based there. Furthermore, investigations showed that WazirX committed no wrongdoing in the events that led to the hack, clearing the exchange of legal exposures.

How will the Process Work? 

As per reports, users will be able to receive around 80% of their account balances. In addition, the exchange plans to introduce a voting process that would last for three months. The voting process would determine if the distribution scheme would be implemented.

If the community votes to support the plan, users will receive their funds within ten days. This includes any profits made during the bull market. The court believes getting users’ funds back to them is a better option than shutting down the exchange.

This news comes days after WazirX secured a major victory in its recovery efforts. On January 17, the crypto exchange announced that it had frozen $3 million USDT in stolen funds. Reports note that the recovery was a collaborative effort between authorities in the U.S. South Korea, and Japan.

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