WazirX customers impacted by the significant hack last year will experience extended delays for reimbursement, as the Singapore High Court has postponed its decision regarding the exchange’s compensation initiative. The cryptocurrency platform recently completed a creditor vote on its restructuring strategy, aiming to repay users whose funds were lost during the July 2024 security breach, with a substantial 93% of participants backing the proposal.
Post-vote, WazirX and its Singapore-based parent company Zettai reported the outcomes to the court, seeking consent to commence the distribution of tradeable recovery tokens (RTs) to creditors. However, the court has adjourned the session, instructing both firms to provide further documentation before a final ruling is issued.
This latest delay has led to irritation among the creditors of WazirX, many of whom expressed their dissatisfaction on social media after the announcement was made on X (formerly Twitter). One frustrated user questioned, “If you want to refund the money… why is courts permission necessary?… If you don’t intend to refund… you deny… why are you prolonging the issue?” Numerous others have accused the company of procrastination and have criticised the deactivation of the comments section.
In response, WazirX asserts that it is “doing everything possible to facilitate this under a viable scheme.” The exchange will continue to operate under a court-ordered moratorium, which offers protection from new legal claims by creditors until at least June 6, when the next hearing is anticipated.
Zettai first sought a moratorium in August 2024, looking for legal security while navigating the aftermath of the hack. The incident in July 2024, attributed to North Korean hackers, resulted in $230 million being siphoned from a multi-signature wallet managed by Liminal Custody. Despite initiatives like a white hat bounty programme, the stolen assets remain unrecovered.
As of last month, over 141,000 creditors had lodged claims totalling nearly $195 million. WazirX had committed to issuing the new RT tokens within seven working days following final court approval, a key milestone that is currently on hold, leaving thousands of customers awaiting resolution.
