In a groundbreaking development for the cryptocurrency community, Indian exchange WazirX has achieved a significant milestone. After enduring a challenging period marked by a massive security breach, the platform has finally received judicial approval to move forward with its proposed restructuring. This paves the way for users to regain access to their funds, offering a much-needed relief and marking a new chapter in WazirX’s journey. This article delves into the details of WazirX’s recovery efforts, the implications of the Singapore High Court’s decision, and the broader context of cryptocurrency security challenges.

WazirX Gets Singapore Court’s Approval for Restructuring

The Road to Judicial Approval

WazirX, a well-known Indian cryptocurrency exchange, has been navigating turbulent waters since the July 2024 security breach attributed to North Korea’s Lazarus Group. This breach resulted in the loss of approximately $235 million, nearly half of the platform’s total reserves at the time. In response, WazirX ceased its operations to safeguard the remaining assets, leaving users unable to access their funds.

The recent Singapore High Court hearing marks a pivotal moment as the court approved WazirX’s restructuring scheme. Initially, WazirX’s first proposal in June was rejected due to non-compliance with Singapore’s Financial Services and Markets Act (FSMA) and concerns over the involvement of Panama-based Zensui. However, the revised proposal, which involves the Indian segment of the platform managing crypto redistribution, has now been sanctioned by the court.

Implications of the Court’s Decision

The approval provides a green light for WazirX to resume operations and commence the distribution of user funds. The platform’s founder and CEO, Nischal Shetty, expressed gratitude to all supporters during this challenging phase, emphasizing a renewed focus on creating value for all stakeholders. While the exact timeline for fund redistribution remains unconfirmed, creditors have been assured that their digital assets will likely be returned within 10 days of implementing the effective scheme.

Understanding the North Korean Crypto Threat

The security challenges faced by WazirX highlight a broader issue within the cryptocurrency space—cyberattacks by notorious groups such as North Korea’s Lazarus Group. According to blockchain analytics firm Elliptic, North Korean hackers have been particularly active, reportedly stealing over $2 billion in digital assets in 2025 alone. Techniques range from large-scale exchange hacks to more subtle methods, such as impersonating recruiters with fraudulent job offers.

Bitcoin’s Market Movement

Amidst these developments, Bitcoin’s market performance has shown signs of recovery. After experiencing a significant downturn, Bitcoin’s price has rebounded to approximately $114,900. This recovery trajectory is closely monitored by investors who are keenly observing the market trends for future movements.

FAQs

What led to WazirX’s restructuring plan’s approval?

The restructuring plan received approval after WazirX addressed compliance issues with Singapore’s FSMA. By involving the Indian component of the platform to handle crypto redistribution, the proposal aligned better with regulatory requirements, facilitating the court’s approval.

How will the approval impact WazirX users?

With the Singapore High Court’s approval, WazirX can now proceed with redistributing users’ funds, which have been inaccessible since the breach. Users can expect access to their crypto holdings within a short period following the scheme’s implementation.

What measures are being taken to prevent future crypto hacks?

To combat the growing threat of cyberattacks, cryptocurrency exchanges are enhancing security protocols, implementing advanced encryption techniques, and working closely with regulatory bodies to ensure robust defense mechanisms against hackers.

Engaging with the ever-evolving landscape of cryptocurrency requires vigilance and a commitment to security and compliance. As platforms like WazirX navigate these challenges, their experiences offer valuable lessons for the industry at large.