WazirX Granted Court Approval for $234M Hack Recovery Plan

Singapore’s High Court has approved a restructuring plan for the crypto exchange WazirX, allowing the company to proceed with repaying users following a $234 million hack in July 2024.

Key Points of the Restructuring Plan

The plan received support from 95.7% of participating creditors, representing $196 million in claims.
The hack involved a Safe Multisig wallet and led to the freezing of withdrawals on the platform.
Users may recover up to 55% of their losses through liquid payments and Recovery Tokens.
Initial payouts will be made in stablecoin or USDT equivalent once the scheme is implemented.

Implementation and Timeline

Distributions of liquid assets are expected to start within 10 business days after the scheme's activation.
The plan involves coordination with payment processors and regulators, adhering to local Indian regulations.
WazirX had to revise its proposal after initial rejection by the court due to concerns over structure and oversight.

This approval marks a crucial step in WazirX's recovery process, aiming to restore user trust and financial stability post-breach.