- The Singapore High Court rejected WazirX’s recovery plan aimed at compensating users affected by a $230 million hack.
- The rejected plan would have helped users recover up to 85% of lost funds, but the court’s decision has left many unsure of when or if reimbursement will happen.
The Singapore court has denied the proposed restructuring efforts of WazirX, a prominent cryptocurrency exchange, after the major $230 million security breach last year.
On the 4th of June, WazirX shared a post on their official blog stating that the Singapore High Court has rejected the restructuring proposal submitted by the company. WazirX, which was one of the major cryptocurrency exchange platforms, had about 33% of users in the country maintaining balances or accounts with the exchange.
As previously recorded by Tronweekly, the exchange planned to set up a distribution process to pay back users who were affected by the hack. Earlier in April, the exchange and its parent company, Zettai, set up different systems for a relaunch and waited for the Singapore court order to move. However, the recent court order has temporarily put a pause to all their plans.
According to the statement released on Wednesday, WazirX announced that the company is considering an appeal. The exchange emphasized that its top priority is to see that all who were affected recover their funds as soon as possible. According to the team, they are currently working with legal and advisory experts to explore every available option, including the possibility of challenging the court’s decision through the appropriate legal channels.
Singapore Court Decision Leaves WazirX Users in Limbo
The hack occurred in July 2024, after one of WazirX’s multi-signature wallets was compromised. The hack caused the exchange to lose almost 45% of its total crypto holdings, deeply affecting thousands of customers and shaking trust in the platform. Many users anticipated the rejected proposal, with many believing that it was going to be a critical step toward restoring user confidence and beginning compensation.
The restructuring plan would have allowed for a rebalancing of the exchange’s token reserves and potentially enabled users to recover up to 85% of the value lost in the initial stage of the attack. However, with the court’s recent decision, many users remain uncertain about the possibility of a reimbursement.
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