Key Highlights

• Court hearing scheduled for October 13, 2025, to consider WazirX’s proposed Scheme of Arrangement.
• The Scheme of Arrangement is designed for structured payments to users affected by the July 2024 hack.
• If approved, distribution will begin within 10 days.

WazirX announced via social media that the Singapore High Court will hold a hearing regarding its proposed Scheme of Arrangements. Details are pending and will be disclosed closer to the date. This follows WazirX’s written submissions to the High Court last month.

Background

This hearing represents a critical phase in WazirX’s restructuring following a hack that compromised around $234 million from its multisignature wallets in July 2024. Despite implementing safeguards like multisignature approvals, hardware wallets, and address whitelisting, hackers exploited vulnerabilities by deceiving key signatories into approving a malicious smart contract, thereby draining assets. This incident has been attributed to the North Korean Lazarus Group, known for extensive cybercrime against financial institutions.

In response, WazirX suspended all trading and withdrawals to prevent further losses, leading to heightened regulatory scrutiny and significant operational and legal challenges. The initiation of the Scheme of Arrangements aims to manage the repercussions of the breach and facilitate compensation for affected users. The plan includes a structured claims process for creditors, ensuring transparency and court oversight.

Understanding the Scheme of Arrangement

In Singapore, a Scheme of Arrangement is a legal framework through which companies can establish binding agreements with creditors post-court approval, allowing for quicker recovery. WazirX’s proposal outlines steps for asset recovery, user refunds, and the resumption of core services upon court endorsement.

The upcoming hearing follows WazirX’s meticulous financial assessments, forensic examinations, and discussions with stakeholders. The court will review the submitted materials to decide on advancing to a creditor vote for implementation.

WazirX has requested patience from its users during this legal process, expressing gratitude for their ongoing support.

What’s Next for WazirX Users?

The outcome of the Singapore High Court hearing is vital for WazirX users eager to access their funds. Approval of the proposed scheme will permit WazirX to convene creditor meetings, secure a vote, and commence execution, which may also re-enable trading and withdrawals partially.

This case highlights the complexities within the cryptocurrency sector, where ambiguous regulations and management challenges can impede recovery efforts.

If the Scheme of Arrangement is ratified, WazirX plans to distribute approximately 85% of rebalanced crypto assets to users within the next 10 business days and grant Recovery Tokens. These tokens will entitle holders to future recoveries and profit-sharing, aiding in the platform’s swift restart.

WazirX has committed to providing ongoing updates while users await this decision, which could pave the way for recovery and renewed stability for the exchange.

Also Read: SEC to Formalize Innovation Exemption for Crypto By Year’s End