Cryptocurrency exchange WazirX has secured approval from a Singapore court to initiate the repayment of funds to customers impacted by a $235 million hack in July 2024. The decision allows the company to proceed with its plan to reimburse users using frozen assets, though final approval hinges on a customer vote.
The attack, one of the largest crypto heists of 2024, affected 4.2 million users, leading to widespread frustration and financial losses. Following the breach, WazirX froze the remaining funds to prevent further withdrawals and sought legal clearance to release them.
Customer Vote to Decide Repayment
Despite the court ruling, WazirX customers remain cautious. The repayment plan requires a majority vote from the victims to proceed. Notably, over half of the affected users needed to approve the proposal. The voting process, expected to occur within three months, will be conducted by an independent entity and audited by the court. Per reports, the voting will not exceed ten days.
Zettai, the Singapore-based parent company of WazirX, said the plan includes restructuring liabilities to maximize returns for users. It also entails issuing recovery tokens as a mechanism to distribute the funds.
“This decision is a significant step in Zettai’s efforts to distribute assets associated with WazirX to users and to revive operations of the platform," the trading platform revealed.
Market Surge Could Offset Losses
Since the July hack, a bull run in the cryptocurrency market has significantly increased the value of the frozen assets, reducing or potentially eliminating losses for affected customers. However, the exact value of the repayments will depend on market conditions at the time of distribution.
WazirX has managed to recover $3 million of the stolen funds so far, though the remaining assets—totaling $235 million—are still missing. Earlier this month, authorities in the United States and South Korea attributed the hack to North Korean cybercriminals, highlighting the persistent risks faced by the cryptocurrency sector.