WazirX hack victims still waiting for payouts as Singapore Court delays approval of restructuring scheme

WazirX customers affected by last year’s high-profile hack will have to wait even longer for reimbursement, after the Singapore High Court deferred its decision on the exchange’s proposed compensation plan. The cryptocurrency platform had recently concluded a creditor vote on its restructuring scheme, designed to repay users whose assets were lost in the July 2024 security breach, with a decisive 93% of participants supporting the proposal.

Following the vote, WazirX and its Singapore-based parent Zettai reported the result to the court, seeking approval to begin disbursing tradeable recovery tokens (RTs) to creditors. However, the court adjourned the hearing, instructing both companies to complete additional documentation before a final order can be made.

The latest delay has sparked frustration among WazirX creditors, many of whom vented on social media after the company announced the news on X (formerly Twitter). “If you want to refund the money… why courts permission is required?… If you don’t want to refund… you deny… why are you going round and round?” posted one angry user, with several others accusing the company of stalling and criticising the disabling of the comments section.

WazirX, for its part, insists it is “doing everything we can to make this possible under an effective scheme”. The exchange will now remain under the protection of a court-ordered moratorium, which shields it from new legal actions by creditors until at least June 6, when the next hearing is scheduled.

Zettai first applied for a moratorium in August 2024, seeking legal cover as it worked through the fallout from the hack. The July 2024 incident, which the company blamed on North Korean hackers, saw $230 million siphoned from a multi-signature wallet managed by Liminal Custody. Despite efforts including a white hat bounty programme, the stolen funds remain unrecovered.

As of last month, over 141,000 creditors had filed claims worth nearly $195 million. WazirX had promised to distribute the new RT tokens within seven working days of receiving final court approval, a milestone that remains on hold, leaving thousands of customers in limbo.