WazirX meets Singapore court deadline post-2024 hack

WazirX, the Indian cryptocurrency exchange hacked in July 2024 for $234.9 million, has said that it is complying with the order passed by the Singapore High Court. On September 26, the exchange filed its last written statement, following the court-mandated deadline in the restructuring case that was attached to the cyberattack.

The previous deadline from the creditors to correct affidavits expired on September 19, which was followed by Zettai Pte Ltd’s response on September 22nd. Also, both WazirX’s Singapore entity and non-party creditors had due dates to file their last submissions by September 26. The court will now examine these filings and will schedule hearings.

WazirX said it will abide by any legal pronouncement and will continue to keep its customers updated in the process.

WazirX hack fallout leads to legal restructuring

The July 2024 breach was a major turning point for the exchange. Hackers targeted the Safe Multisig wallet and stole assets worth almost $235 million; subsequent investigations blamed North Korean hackers for the attack. In the aftermath, WazirX froze both cryptocurrency and Indian rupee withdrawals.

To limit the financial impact, the exchange is pursuing a scheme of arrangement under the supervision of the courts in Singapore. The process is intended to restructure obligations without interfering with operational continuity. WazirX’s legal proceedings in Singapore are central to the case and involve the Singaporean entity that operates as WazirX, Zettai Pte Ltd, which is in charge of the crypto-to-crypto market. 

Additionally, non-party creditors have been invited to make their position known as the restructuring plan rolls out. This court decision also emphasizes regulatory oversight, as judges asked some of the creditors to resubmit affidavits after their initial filings did not satisfy regulatory requirements. 

Next steps in the court process

With all submissions now filed, the High Court is likely to fix a hearing date. The decision will impact the future of WazirX’s restructuring strategy, which aims to balance creditor claims with the exchange’s ability to recover and rebuild.

In a recent update, WazirX reported that 95.7% of scheme creditors and 94.6% of approved claims voted in favor of its amended restructuring proposal. The results were also independently confirmed by Alvarez & Marsal (SE Asia) Pte Ltd’s Joshua Taylor and Henry Anthony Chambers, who found there to be solid support for the adjusted plan.

The revised timetable reflects the court’s attempts to simplify the process so that creditors and WazirX have an even playing field to present their cases. For customers, the next phase will allow clarity on the extent to which compensation or recovery measures can be put in place under the scheme of arrangement.

Despite the ongoing legal proceedings, WazirX has emphasized its commitment to rebuilding user trust. The exchange noted, “We truly value your patience and support. Thank you for standing by us.”