WazirX Submits Final Court Filing Following $234M July Security Breach

Singapore court receives WazirX's conclusive legal response to massive cryptocurrency hack.

The $234 million security incident—one of the largest exchange breaches in recent memory—prompted immediate regulatory scrutiny and user fund freezes.

Legal teams filed comprehensive documentation detailing security improvements and recovery protocols.

Exchange executives maintain platform integrity while implementing enhanced cold storage solutions and multi-signature protocols.

Another day, another reminder that in crypto, your keys aren't just your coins—they're someone else's target.

WazirX hack fallout leads to legal restructuring

The July 2024 breach was a major turning point for the exchange. Hackers targeted the Safe Multisig wallet and stole assets worth almost $235 million; subsequent investigations blamed North Korean hackers for the attack. In the aftermath, WazirX froze both cryptocurrency and Indian rupee withdrawals.

To limit the financial impact, the exchange is pursuing a scheme of arrangement under the supervision of the courts in Singapore. The process is intended to restructure obligations without interfering with operational continuity. WazirX’s legal proceedings in Singapore are central to the case and involve the Singaporean entity that operates as WazirX, Zettai Pte Ltd, which is in charge of the crypto-to-crypto market. 

Additionally, non-party creditors have been invited to make their position known as the restructuring plan rolls out. This court decision also emphasizes regulatory oversight, as judges asked some of the creditors to resubmit affidavits after their initial filings did not satisfy regulatory requirements. 

Next steps in the court process

With all submissions now filed, the High Court is likely to fix a hearing date. The decision will impact the future of WazirX’s restructuring strategy, which aims to balance creditor claims with the exchange’s ability to recover and rebuild.

In a recent update, WazirX reported that 95.7% of scheme creditors and 94.6% of approved claims voted in favor of its amended restructuring proposal. The results were also independently confirmed by Alvarez & Marsal (SE Asia) Pte Ltd’s Joshua Taylor and Henry Anthony Chambers, who found there to be solid support for the adjusted plan.

The revised timetable reflects the court’s attempts to simplify the process so that creditors and WazirX have an even playing field to present their cases. For customers, the next phase will allow clarity on the extent to which compensation or recovery measures can be put in place under the scheme of arrangement.

Despite the ongoing legal proceedings, WazirX has emphasized its commitment to rebuilding user trust. The exchange noted, “We truly value your patience and support. Thank you for standing by us.”

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