WazirX users have taken a significant step toward potential compensation after the WazirX hack that took place a year ago.
They have approved a revised restructuring plan to recover funds lost in a $234 million hack.
The plan is backed by 95% of voting creditors representing over $206 million in losses.
This is after the Singapore High Court rejected an earlier proposal due to regulatory concerns.
How did the WazirX hack happen?
The July 2024 hack happened when North Korean hackers targeted a Safe Multisig wallet. This lead WazirX to suspend all cryptocurrency and Indian rupee withdrawals.
WazirX founder, Nischal Shetty said that pending court approval, WazirX could resume operations. They would also begin compensating users within 10 days of the plan taking effect.
This timeline contrasts with earlier estimates from George Gwee, a director at restructuring firm Kroll, who suggested that repayments could take two to three months post-approval.
New Plan Addresses Court Concerns
The initial restructuring plan, approved by users in April 2025, was rejected by the Singapore High Court over regulatory concerns.
The court raised concerns about the use of recovery tokens, which represent users’ outstanding claims not covered by initial distributions.
The tokens, funded by WazirX’s profits and recovered assets, are designed to provide periodic payouts to holders.
How will users be compensated for the WazirX hack?
According to the revised plan, compensation will now be managed by Zanmai India.
It is a subsidiary under India’s Financial Intelligence Unit, rather than WazirX’s Singapore-based parent company, Zettai.
In June 2025, Zettai established Zensui Corporation in Panama to oversee the platform’s cryptocurrency services.
Zettaia will also address regulatory shifts, including Singapore’s central bank mandate requiring local crypto providers to cease serving overseas markets by June 30, 2025.
User frustrations and mixed reactions
The voting period saw nearly 150,000 creditors take part.
Many users expressed relief at the prospect of recovering some funds, though others voiced frustration over prolonged delays and regulatory uncertainties.
Some took to platforms like X and Reddit, describing the restructuring as a necessary step to “move on” from the ordeal.
However, skeptics criticized the transfer of operations to Panama and questioned the fairness of recovery token distributions. This is particularly for holders of unhacked coins that have risen in value since the breach.
WazirX has warned that without an approved restructuring plan, liquidation could delay repayments until 2030.
Despite the approval, some users remain dissatisfied, with a few advocating for legal action.
However, a separate April 16 ruling by India’s Supreme Court dismissed a petition fromHack victims, citing its lack of authority to rule on cryptocurrency policy.
As WazirX navigates regulatory and operational hurdles, the crypto community watches closely, with the outcome likely to set a precedent for how exchanges handle large-scale hacks and user compensation.
