The Singapore High Court has approved WazirX’s reorganization plan, which will facilitate the repayment of 75% to 80% of the stolen customer funds.
However, despite this decision, many victims remain wary and distrustful of the process. Their concerns reflect ongoing doubts about whether they will recover all of their lost assets and whether the plan will effectively meet the needs of all those affected.
Singapore Court Gives WaxirX Green Signal For Repayment Plan
In accordance with the Company’s Act of 1967, which governs and establishes rules for the functioning of Indian corporations, the restructuring plan was authorized on January 23, 2025.
In addition, the Singapore High Court decided that WazirX did not commit any wrongdoing in connection with the hack, according to Crowdfund Insider.
WazirX lost more than $234 million on July 18, 2024, in a variety of cryptocurrency holdings. The attack was linked to the Lazarus Group, a state-sponsored hacker collective in North Korea.
Also Read: WazirX Successfully Freezes First Wave of Stolen Assets Worth $3M From North Korean Hackers
Why Are Customers Still Not on Board?
Customers experienced severe distress as a result of the attack, as many were unable to access their remaining cash. WazirX requested and was granted a four-month court order in September 2024 that protected it from lawsuits from irate users.
It’s interesting to note that the value of frozen assets has surged dramatically due to the past crypto bull market. By the time the payback procedure is over, the exchange could be able to reduce or even eliminate losses for clients. However, because of possible market swings, the funds’ ultimate value is still unknown.
Additionally, with the four-month period coming to an end, customers have now grown impatient and scared about their funds.
Customer trust can be seriously harmed by a fund resurrection delay, particularly if people are left waiting for their hard-earned money to be returned. Customers’ uncertainty and annoyance when their cash is unavailable for prolonged periods of time lead to this breach of trust.
These worries are only heightened by a lack of clarity and openness regarding the healing process, which makes victims feel abandoned. These delays gradually damage the institution’s reputation, which makes it more difficult for the business to win back the trust of its clients.
The long-term effects of lost trust can be irreparable if prompt, transparent action is not taken; this frequently results in reputational harm and consumer attrition.
Also Read: CoinSwitch Comes To The Rescue, Announces Over $70 Million Recovery Plan For WazirX Victims