TLDR
- North Korea’s Lazarus Group stole $234M from WazirX in 2024, affecting thousands of customers
- Singapore High Court ruling requires WazirX to return 75-80% of lost funds through structured plan
- Exchange offers recovery tokens with profit-sharing rights and future fund recovery benefits
- $3M in stolen USDT already frozen, with multi-country investigation ongoing
- User group protests proposed 3-month voting timeline as unnecessarily long
The aftermath of one of crypto’s largest hacks in 2024 is taking a new turn as the Singapore High Court approves WazirX’s plan to repay users affected by last year’s $234 million theft. The ruling, issued January 23, 2025, establishes a framework for the exchange to return between 75% and 80% of stolen customer assets.
North Korea’s notorious Lazarus Group executed the attack on July 18, 2024, adding WazirX to their list of targets. The same group previously stole $54 million from CoinEx in September 2023, showing a pattern of targeting cryptocurrency platforms.
Under the newly approved plan, WazirX will avoid liquidation while focusing on getting funds back to customers. The exchange has created recovery tokens as part of its solution, giving affected users a claim on future profits and any recovered funds.
The court ruling falls under the Company’s Act 1967, providing legal backing for WazirX’s restructuring efforts. The plan includes a distribution of liquid assets within 10 business days after receiving user approval through a voting process.
WazirX’s recovery tokens serve as more than just IOUs. These digital credits document each user’s losses while providing ongoing benefits. Token holders will receive a share of the exchange’s profits and participate in any future recovery of the stolen assets.
Progress in fund recovery has already begun, with WazirX successfully freezing $3 million in Tether (USDT). The exchange is working with authorities in multiple countries, including the United States, Japan, and South Korea, to track down more of the stolen cryptocurrency.
The Singapore High Court found no evidence that WazirX was involved in or responsible for the hack. This finding clears the way for the exchange to focus on implementing its recovery plan rather than defending against accusations of wrongdoing.
A three-year profit-sharing program will support the token repurchase initiative. This approach allows WazirX to maintain normal operations while working to repay affected users, following guidelines set by the Singapore Scheme of Arrangement.
Not everyone supports the timeline proposed in the recovery plan. A user group called “Justice for WazirX users” has emerged on social media platforms to challenge the process. They argue that the proposed three-month voting period is unnecessarily long.
The group’s criticism extends to WazirX’s leadership, particularly CEO Nischal Shetty. They claim the voting process could be completed in less time and view the extended timeline as an unnecessary delay in the recovery process.
International cooperation marks a key component of the recovery effort. Law enforcement agencies across multiple countries are coordinating to track the stolen funds, highlighting the global reach needed to combat cryptocurrency crime.
The frozen $3 million in USDT represents an early win in the recovery process. This success suggests that additional funds might be recovered as international investigations continue and tracking efforts expand.
WazirX’s structured repayment plan spans three years, giving the exchange time to generate profits for token repurchases. The timeline aims to balance quick repayment with practical operational constraints.
The recovery tokens introduce a new model for handling cryptocurrency theft recovery. By giving users a stake in the exchange’s future success, WazirX creates alignment between the platform’s recovery and user compensation.
The court’s decision provides a detailed framework that could influence how future cryptocurrency hacks are handled. As digital asset theft continues to challenge the industry, WazirX’s approach may serve as a template for other exchanges facing similar situations.
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