India-based cryptocurrency exchange WazirX plans to fully restore the operation of crypto withdrawals by mid-April 2025 after a cyber-attack led to the theft of around $230 million in cryptocurrencies. This comes after a December 6 application was made to the court by WazirX's parent company, Zettai, requesting the court to hold a shareholders meeting. The meeting will enable stakeholders to approve a proposed scheme of arrangement that addresses creditor concerns and compensates users.
The Singapore court has set a hearing on the application on January 22, 2025. After that, WazirX wants to distribute liquid assets within 10 days, in addition to other steps, including profit sharing from a planned decentralized exchange and the attempt to get back illiquid assets in the next three years.
WazirX reported that as of December 2024, it had $565.7 million in digital assets and $546 million in user claims.
Zettai has provided a clear timeline for the court-endorsed scheme of arrangement to tackle the company's liabilities. The process starts with a creditors' meeting after receiving a court order on January 27, 2025. Before the disclosure of the list, the list of creditors as of February 7 shall be posted online so that creditors can check balances and file complaints or other additional information.
Zettai will organize the town hall on February 12 to explain the scheme's financial output and the webinar on February 18. Payouts will be made based on an independent assessor's validation of each individual's claim; the final creditor list should be released by March 4. Compliance with the proposed scheme will be conducted through a vote between March 4 and 13, and the results will be released following verification.
If approved by a majority, Zettai intends to file for a court order approving the Distribution Plan by April 7, 2025, to enable the expeditious distribution of the assets. However, some creditors are still dissatisfied with the slow recovery process.
WazirX lost $230 million worth of cryptocurrencies in the July 2024 cyberattack, which amounted to 45% of the platform's reserves. The hack also halted activity on the exchange, including withdrawal services. INR withdrawals were partially restored in August, but full fiat currencies have yet to be unblocked.
The Indian Computer Emergency Response Team (CERT-In) and the country's Financial Intelligence Unit have since investigated the breach. October was a crucial month for WazirX as other government agencies questioned its officials, and the Delhi Police arrested a man suspected of having been involved in the hack.
As per the recovery timeline of mid-April 2025, WazirX continues to work to restore the trust of users impacted by the hack. Both the exchange and its parent company are exploring restoring business.