WazirX Wins Court Nod to Compensate Last Year’s Hack Victims - Major Step Toward Exchange Accountability

Indian crypto exchange clears legal hurdle to repay users after devastating security breach.

The Road to Recovery

WazirX finally gets judicial approval to distribute funds to users affected by the 2024 platform hack—a move that could set precedent for how exchanges handle post-breach responsibilities. The court's green light comes after months of legal wrangling and user frustration.

Restoring Trust in Crypto

This compensation scheme represents one of the first structured victim repayment programs in Indian crypto history. While users celebrate the news, industry watchers note it's about time exchanges started acting like actual financial institutions rather than wild west saloons.

Because nothing says 'mature financial ecosystem' like needing a judge's permission to return stolen money.

“Thank you to everyone who supported this difficult phase of WazirX. The Singapore High Court approved the scheme. Its your support and love that has made this possible,” he wrote.

The court’s decision comes a few weeks after creditors approved an updated version of the plan. This will enable the company to proceed to the next stage of recovery — processing payments to users through a tokenized compensation mechanism and resuming exchange operations.

As a reminder, in July 2024, WazirX lost approximately $234 million due to a hack of its SAFE Multisig wallet, after which the exchange was forced to suspend all withdrawals. Analysts subsequently linked the attack to the North Korean hacker group Lazarus, as it used similar methods.

The exchange contacted the police and specialists from the CERT-In, and canceled transactions made between July 18 and 21, 2024. In November, the Delhi Police’s Intelligence and Strategic Operations Unit detained a man on suspicion of complicity in the hack.

In addition, representatives of the exchange have been going through complex legal procedures for more than a year to refund customers. In April 2025, users and creditors supported the initial version of the scheme warned by WazirX management: if it was rejected, payments could have been delayed until 2030.

However, the court did not approve the document at the time, expressing concerns about the future regulatory regime for tokenized assets, which could affect the issuance of recovery tokens.

With the current approval, WazirX users are closer to a refund. According to Shetty, once the plan comes into effect, users will be able to receive their funds within 10 days.

However, according to George Gwee, director of Kroll, the consulting firm that is supporting the restructuring process, payments may take two to three months after the court approval, as the exchange still needs to go through several technical and procedural steps.

As of the time of publication, WazirX has not provided an exact timetable for the payments to users.

It should be noted that the exchange had a four-month moratorium on debt collection.

Сообщение WazirX Received Court Approval to Pay Victims of Last Year’s Hack появились сначала на INCRYPTED.