- Singapore High Court approves WazirX exchange’s restructuring plan following $235 million hack.
- Users may recover up to 80% of stolen funds through token distributions.
- North Korean Lazarus Group identified as perpetrators of July 2024 cyberattack.
- Zettai, the parent company, filed for court-supervised recovery process.
- Court approval prevents potential liquidation while enabling systematic fund recovery.
Singapore Court Backs WazirX Recovery Plan
The Singapore High Court has approved WazirX cryptocurrency exchange’s restructuring strategy, offering hope to users affected by a $235 million cyber theft. The January 23 ruling allows the Indian exchange to proceed with its recovery plan under the Companies Act 1967.
Details of the Recovery Strategy
Zettai, which owns WazirX, presented a court-supervised restructuring plan aimed at maximizing creditor recovery without resorting to liquidation. The exchange projects that users could recoup between 75% and 80% of their account balances through systematic token distributions.
North Korean Connection
The July 2024 attack has been attributed to the Lazarus Group, a notorious North Korean cybercrime organization. This Hacking collective has a documented history of targeting cryptocurrency platforms, with the FBI linking them to multiple high-profile cryptocurrency heists worth billions of dollars over the past five years.
The court’s decision represents a positive development for cryptocurrency security and asset recovery procedures in Asia’s digital asset sector. It sets a precedent for how exchanges can address major security breaches while maintaining operational continuity.
The approved restructuring strategy mirrors similar recovery efforts in the cryptocurrency industry, where exchanges have successfully restored user funds following security breaches through structured repayment plans and legal frameworks.
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