WazirX Plans Mid-May 2025 Relaunch
Indian cryptocurrency platform WazirX is gearing up to restart its operations, aiming for a mid-May 2025 relaunch, according to recent communications made on April 21. The company has indicated that it remains within the timeframe previously set for revival, pending a final ruling from the Singapore court.
Court Ruling and Recovery Strategy
WazirX’s parent organization, Zettai, has reportedly met all preliminary requirements necessary for this process. The decisive court hearing is scheduled for May 13, where the Singapore High Court will evaluate the requested restructuring plan of the exchange. This ruling is pivotal in determining WazirX’s ability to implement its recovery strategy. If granted approval, the platform plans to unblock and distribute the recovered assets within ten business days post-ruling.
However, WazirX has cautioned users about the potential for delays stemming from the judicial process, which lies outside their control, yet they reassure readiness for swift action once they receive permission to move forward.
Addressing User Concerns
In an effort to navigate through its restructuring challenges, WazirX’s CEO, Nischal Shetty, addressed user concerns regarding delays in the distribution of funds. He emphasized that the exchange is pending the court’s outcome before activating its recovery initiative.
The proposed recovery plan, dubbed the Scheme of Arrangement, has garnered significant backing from creditors, with over 93% expressing their support. This strategy aims to prevent liquidation while working towards establishing a decentralized exchange (DEX), distributing recovery tokens, and implementing gradual buybacks.
Despite the overwhelming creditor support, some users have criticized the plan, alleging that creditors felt coerced into agreement due to the risk of losing everything in liquidation. WazirX has responded to these criticisms by asserting that this plan could enable users to reclaim up to 80% of their assets.
Challenges Faced by WazirX
WazirX encountered a severe setback in July 2024 when it was the target of a $230 million hacking incident linked to North Korean cybercriminals. The stolen cryptocurrencies were laundered through various systems designed to obscure their trail, complicating efforts to recover the funds and leaving many customers uncertain about their financial futures.
Following this incident, the exchange has placed significant emphasis on formulating a robust recovery plan, with the impending court ruling marking a critical juncture in their efforts.
