WazirX Gets Singapore Court Approval for User Repayments

The Singapore High Court’s decisive approval of WazirX’s restructuring plan represents a critical turning point for the embattled cryptocurrency exchange and its user base. This judicial endorsement comes after months of negotiations and follows creditor backing of a revised proposal, creating a legally binding framework for the exchange to address its obligations to more than 150,000 users impacted by the security breach. The court’s involvement provides necessary oversight and legitimacy to the compensation process, ensuring that user interests remain protected throughout the implementation phase.

With the legal hurdles now cleared, WazirX can formally initiate the compensation mechanism outlined in its restructuring plan. The approved scheme specifically includes token-based fund distributions, which will allow affected users to receive compensation through digital assets rather than traditional currency. This approach reflects the crypto-native nature of the exchange’s operations while potentially streamlining the distribution process across its global user base. The court’s monitoring of this process will be crucial in maintaining transparency and user confidence during what has been a challenging period for all stakeholders.

The path to court approval follows one of the most significant security incidents in cryptocurrency exchange history—a $234 million hacking event that occurred last year. This breach not only represented a substantial financial loss but also severely tested user confidence in the platform’s security protocols and operational resilience. The scale of the incident necessitated a comprehensive restructuring approach that could balance the immediate need for user compensation with the long-term viability of the exchange itself.

WazirX’s restructuring plan addresses both the immediate compensation requirements and the broader operational revival needed to restore the exchange’s market position. The inclusion of operational revival measures alongside user compensation demonstrates a holistic approach to recovery, recognizing that sustainable operations are essential for fulfilling long-term obligations to users. The Singapore High Court’s scrutiny of these measures ensures that the exchange’s revival strategy meets appropriate standards of financial and operational soundness before implementation.

WazirX founder Nischal Shetty publicly acknowledged the critical role of community support in navigating what he described as “this difficult phase” for the exchange. In his social media statement following the court decision, Shetty emphasized that user backing was instrumental in achieving this recovery milestone, stating “It’s your support and love that has made this possible.” This recognition underscores the importance of maintaining user trust throughout crisis management in the cryptocurrency sector, where community sentiment can significantly influence an exchange’s ability to recover from major incidents.

The court-approved restructuring plan now enables WazirX to progress to the next phase of its recovery journey, combining user compensation with operational revival. This dual-track approach allows the exchange to address immediate creditor obligations while simultaneously working to restore normal trading operations and service delivery. The successful implementation of this comprehensive plan will be closely watched by industry observers as a potential model for crisis management and user protection in the rapidly evolving cryptocurrency exchange landscape.