WazirX Eyes Comeback as Court Weighs Post-Hack Recovery Plan

WazirX, once India’s most prominent crypto exchange, is inching closer to a long-awaited reboot following last year’s catastrophic $234 million hack. In a public update posted to X on April 21, the platform confirmed that its parent company, Zettai PTE Ltd, is preparing to relaunch the exchange and compensate affected users—pending approval from Singapore’s High Court. 

The decisive court hearing is scheduled for May 13, and if successful, WazirX plans to restart operations within 10 business days.

WazirX Awaits Key May 13 Decision

The July 2024 breach, reportedly carried out by North Korean hackers, targeted WazirX’s Safe Multisig wallet, leading to an abrupt suspension of both crypto and INR withdrawals. Since then, the company has worked to craft a legally binding recovery and restructuring plan to restore both platform functionality and user confidence.

Zettai noted that it has already met all preliminary requirements leading up to the sanction hearing. “This hearing is essential for the Scheme to become legally effective,” the company stated, adding that they continue to respect the timeline and independence of the judicial process.

Recovery Tokens and 2030 Warning Push Creditors to Approve Plan

In a vote held on April 7, over 90% of WazirX’s creditors backed the proposed restructuring, which centers on the issuance of “recovery tokens.” These tokens, funded through future net profits of the exchange, are designed to eventually reimburse users with 75–80% of their pre-hack balances. It’s a bold, performance-based approach—one that only moves forward if the exchange itself returns to profitability.

Zettai previously warned that without this approval, repayment timelines could stretch all the way to 2030. Fortunately for users, the strong creditor support, along with Singapore’s earlier permission to hold the vote, signals growing momentum toward WazirX’s revival.

Still, not all users are satisfied with the outcome. In a separate legal twist, 54 victims had petitioned India’s Supreme Court to take action against WazirX, its co-founder Nischal Shetty, Binance, and custody partner Liminal. 

The plea also included a request for a financial audit of WazirX. However, Justices B.R. Gavai and Augustine Masih dismissed the case on April 16, stating that the matter fell outside the court’s jurisdiction, as it involved crypto policy—an area where regulatory clarity in India remains elusive.