Looks like things are finally looking up for Nischal Shetty and his crypto exchange WazirX. Ever since the hack, a lot has been going around, and as investors still await, the exchange has finally received its first green light from the Singapore court.
The Singapore High Court has officially approved WazirX’s reorganisation plan, opening the door for customer reimbursements in the wake of last year’s $234 million hacking disaster.
A big approval
The court’s ruling followed weeks after a revised proposal was approved by creditors. With the permission, WazirX may begin the next stage of its recovery process, which includes restoring the exchange’s operations and distributing funds based on tokens.
Shetty took to X to note, “Thank you to everyone who supported this difficult phase of WazirX. The Singapore High Court has approved the scheme.”
He added, “It’s your support and love that have made this possible. Now we set out on the next phase to work hard and create value for everyone. We’re here because of YOU”
Why is this big for WazirX?
The India-based exchange has already spent more than a year overcoming the legal obstacles necessary to refund cash to more than 150,000 impacted consumers, so the court’s permission represents a significant milestone.
In July 2024, a Safe Multisig wallet hack cost WazirX over $234 million in cryptocurrency holdings, forcing the exchange to suspend withdrawals on the platform.
Since experts saw that the Lazarus cyber organisation frequently employed identical tactics, the attack has been attributed to North Korean hackers.
Months after the exchange warned customers that non-approval may postpone repayments until 2030, WazirX creditors accepted a similar plan in April.
Also Read: WazirX Rebrands to Zensui, Relocates to Panama Following Hack and Regulatory Pressure in Singapore
The hurdles that went by
Getting clearance wasn’t easy. More than 93% of creditors initially supported WazirX’s restructuring plan in March. However, because of regulatory issues around token distributions, the Singapore High Court dismissed the plan in June.
WazirX responded by making changes to the proposal. Repayments were made via Zanmai Labs, an Indian company registered with the nation’s Financial Intelligence Unit, in the updated version.
Consequently, in the second vote, which took place from July 30 to August 6, the revised proposition received even more support. Kroll Issuer Services oversaw the procedure, which was restricted to consumers with positive account balances as of July 18, 2024.
In the meantime, Zettai Pte Ltd, which Binance purchased in 2019, was essential to the reorganisation. While Zanmai Labs continued to manage fiat operations in India, the Singaporean firm maintained custody of WazirX’s cryptocurrency assets and obligations.
What does this mean?
After more than a year of waiting, consumers are finally getting their money back with the most recent development.
Shetty stated on August 20 that the exchange will be resurrected with the court’s sanction and that consumers might receive their money within 10 days of the plan going into force.
George Gwee, a director at restructuring firm Kroll that is collaborating with WazirX, stated that users might have to wait two to three months following approval before they can finally receive funds, despite Shetty’s apparent optimism regarding a speedy turnaround.
Also Read: Anonymous Post Claims WazirX Moved 55.25M XRP To Binance Before $234M Hack