Singapore Court Approves Plan to Repay Customers
Indian cryptocurrency exchange WazirX has taken a major step forward, receiving approval from a Singapore court to compensate customers whose funds were not stolen in a massive $235 million hack in July 2024. The decision brings some relief to affected users, although there are still challenges in fully resolving the aftermath of one of the largest cryptocurrency hacks of the year.
Although the process won’t be quick, it may take some time as WazirX requires at least 4 months before the repayment process can begin.
Plan to repay unstolen funds
Following the hack, WazirX froze all platform assets, leaving users in limbo. The exchange’s parent company, Zettai, which is headquartered in Singapore, needs court approval to start the repayment process. The court approval now allows WazirX to return unstolen funds, which is a positive development for users.
How the program works
However, repayment does not happen immediately. WazirX’s recovery strategy includes a user voting process, which is expected to be completed within three months. If approved, users will receive net liquid assets within 10 working days. The exchange plans to issue recovery tokens that represent outstanding claims, allowing users to benefit from future platform profits and recovered assets.
Zettai has committed to a three-year buyback program for the tokens, funded by platform revenue and recycled funds. Additionally, WazirX aims to launch a decentralized exchange to further its financial recovery efforts.
Efforts to recover stolen assets
WazirX has been working to recover stolen assets and recently froze $3 million worth of compromised funds. Despite these efforts, the fate of the remaining stolen assets remains uncertain, exacerbating user concerns.
WRX Token Price Increases
Following the news, WRX rose nearly 10%, trading at $0.03089, with a 24-hour high of $0.03272. However, the future of the coin remains uncertain after Binance delisted it, raising questions about its long-term prospects.
Although the court approval brings some hope, WazirX users are still following an uncertain path. The upcoming voting session will be critical in determining how and when the funds will be returned. Meanwhile, traders are keeping a close eye on WRX as its performance may reflect broader confidence in the exchange’s recovery efforts.
If done successfully, this recovery amount released to investors could roll back into the cryptocurrency industry, as Bitcoin and other assets bet high under Trump.
