- WazirX plans to recover funds using court-approved strategies for user compensation.
- The recovery includes token distributions backed by liquid assets to ensure payouts.
- Global collaboration aids asset recovery as WazirX prepares to relaunch operations.
The Singapore High Court has approved WazirX’s restructuring plan after a devastating $235 million hack linked to North Korea’s Lazarus Group. This decision allows WazirX, an Indian cryptocurrency exchange, to convene with users, propose asset allocation strategies, and outline measures to restore operations. Under the Companies Act 1967, the court’s ruling ensures creditor engagement while prioritizing fund recovery and platform revival.
A Strategic Step Toward Recovery
WazirX, through its parent company Zettai, presented a restructuring proposal to avoid liquidation under Singapore’s Companies Act 1967. The plan aims to allow creditors to recover 75–80% of account balances.
Additionally, the court issued a 16-week moratorium to protect Zettai from legal actions during the restructuring process. This time will be used to implement a Scheme of Arrangement detailing how assets will be allocated and how platform functionality will be restored. Urging users to support the plan, Nischal Shetty, the founder of WazirX said,
<blockquotes/> “The Singapore High Court has granted us leave to convene a scheme meeting. This marks another significant milestone in the restructuring process as we move closer to restarting the WazirX platform.” <blockquotes/>
Recovery Tokens and Asset Allocation
WazirX’s recovery strategy involves issuing Recovery Tokens (RTs) backed by liquid assets. The distribution is planned within 10 business days of the scheme’s launch. RT purchases will be financed through net profits over the next 36 months.
Moreover, the court allowed modifications to the meeting process to engage inactive users, facilitating virtual participation and electronic voting on the proposal.
The platform also aims to restart operations with enhanced features, prioritizing creditor recoveries through systematic asset distribution.
Related: Tornado Cash Sanctions Overturned: Major Victory for Privacy
Global Collaboration in Asset Recovery
Efforts to recover stolen funds have been bolstered by freezing $3 million USDT connected to the hack. Authorities from the US, Japan, and South Korea are assisting in recovering additional assets linked to the attack, reportedly carried out by North Korea’s Lazarus Group.
Financial estimates provided by Kroll favor the reorganization plan over liquidation, suggesting it maximizes returns for creditors. With a meeting scheduled shortly, analysts view WazirX’s efforts as a benchmark for addressing financial crises in the crypto sector.
