In a positive update for WazirX users impacted by the $234 million hack in July 2024, nischal Shetty, the co-founder of WazirX, has addressed ongoing fears and confirmed that a key court hearing is scheduled for May 13, 2025. This hearing will determine the next steps in the release of funds, bringing optimism to the millions of users eagerly awaiting compensation.
The Hack and Its Impact on WazirX
Back in July 2024, WazirX was targeted in a major cyberattack, reportedly linked to North Korea’s Lazarus Group, leading to the theft of $234 million. Following this, WazirX’s parent company, Zettai Pte Ltd, initiated a legal restructuring process to recover the stolen funds. The primary aim is to return a significant portion of these funds to the affected users through a combination of direct settlements and profit-sharing mechanisms, with an anticipated payout of 75–80% of the stolen assets.
Legal Developments and Restructuring Plan
On january 23, 2025, the singapore High court gave the green light for Zettai to proceed with its proposed restructuring plan, which includes a “Scheme of Arrangement.” This plan outlines several key provisions:
Immediate Payout: Around 52% of the stolen funds will be repaid promptly to users.
Recovery Tokens: The remaining 48% will be compensated through the issuance of recovery tokens, giving users a share in the profits of WazirX’s future operations.
Moratorium: A 16-week legal protection period has been granted to Zettai while the company works on implementing the plan.
This restructuring plan is designed to ensure that funds are returned in an orderly and legal manner, with transparency at every stage.
The court Hearing on May 13: What’s at Stake
The upcoming court hearing scheduled for May 13, 2025, is a pivotal moment in the recovery process. During this hearing, the court will assess the progress of the restructuring efforts and decide on the next steps in distributing the funds to affected users. This hearing follows a series of legal steps, including the filing of affidavits by Shetty and the convening of creditor meetings.
Nischal Shetty’s Role in the Process
Nischal Shetty has played an instrumental role in leading the efforts to recover funds and resolve the situation for WazirX users. His proactive approach in keeping stakeholders updated and guiding the legal and restructuring process demonstrates his commitment to ensuring that users are fairly compensated.
What’s Next?
The May 13 Hearing: This hearing will be critical for determining the next steps in the restructuring and fund release process.
Distribution of Funds: Based on the court’s decision, users may soon start receiving the promised compensation.
Continued Updates: WazirX users should stay tuned for official updates as the situation progresses.
The outcome of the May 13 hearing could bring much-needed relief to users who have been waiting for months to recover their funds. As the case moves forward, it will likely be a defining moment for both WazirX and its user base
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