Singapore Court Approves Plan to Return Frozen Assets to WazirX Users After a Year of Suspension
A recent ruling by the Singapore High Court has reignited hope among users of the Indian cryptocurrency exchange WazirX, after the court approved a restructuring plan that will allow the gradual recovery of assets frozen since a major cyberattack in July 2024.
🔹Background
In July 2024, WazirX suffered a massive security breach in which approximately $234–235 million worth of user assets were stolen, forcing the exchange to freeze nearly all affected accounts and wallets.
The company’s parent entity, Zettai Pte Ltd, later submitted a “Scheme of Arrangement” to the Singapore High Court seeking permission to restructure and repay users. However, in June 2025, the court rejected the first version of the plan, citing a lack of sufficient protections for both users and creditors.
🔹What the New Court Decision Includes
In a follow-up vote held in August 2025, around 95.7% of creditors (by number) and 94.6% (by value) approved the revised plan.
The Singapore High Court has now ratified the amended version, allowing WazirX to resume operations and begin distributing frozen assets to users.
The exchange is expected to reopen withdrawals and user wallets by the end of October 2025.
🔹 How the Asset Return Will Work
Users will receive rebalanced digital assets or their equivalent value in USD or USDT, depending on token liquidity.
About 14.5% of claims that cannot be fully covered by liquid assets will be compensated through Recovery Tokens, which can be redeemed gradually over time.
The exchange plans to use BitGo and other external custodians to ensure the safe management of assets during the repayment process.
🔹Remaining Challenges
While the ruling marks a major step forward, WazirX has cautioned that repayments will occur in phases, with some users possibly facing delays due to regulatory and verification requirements (KYC/AML).
Additionally, assets that were illiquid or lost during the breach may require further recovery efforts before users can receive their full balances.
🔹Market Impact
Industry analysts see this ruling as a positive signal for trust restoration in cryptocurrency exchanges across Asia, particularly following a series of global exchange collapses and hacks.
Experts believe that WazirX’s court-approved recovery plan could serve as a model framework for managing crisis recovery in digital asset markets worldwide.
https://cointelegraph.com/news/wazirx-court-approval-user-repayments-234m-hack
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