WazirX Plans User Compensation Post-Court Approval on May 13, 2025

WazirX, one of India’s top cryptocurrency exchanges, is close to a major moment. On May 13, 2025, a crucial court hearing will decide the future of Wazir’s user compensation plan and its business operations. This comes after a huge $234 million hack in July 2024, which affected thousands of users and damaged trust in the platform. The hack was linked to North Korean cybercriminals, making the case one of the biggest cyberattacks in India’s crypto scene.

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The July 2024 WazirS Hack and Its Effects

The WazirX hack shocked the Indian crypto world. Many users had their funds frozen, shaking confidence in the exchange. Here’s a quick summary of the breach:

• Amount stolen: $234 million
• Users affected: Thousands in India and abroad
• Hackers: North Korean cybercriminals

After the attack, WazirX has focused on rebuilding trust and finding ways to compensate users. The parent company, Zettai PTE Ltd, prepared a recovery plan and compensation strategy. However, this plan needs court approval.

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What to Expect on May 13, 2025 Court Hearing

The upcoming court hearing will be a turning point. The court will review WazirX’s restructuring plan and compensation scheme. Over 90% of creditors have already supported the plan, showing strong backing despite the difficulties faced by the exchange.

Main Points of Wazirs Restructuring Plan

• Recovery Tokens: Instead of paying cash right away, Wazir will issue recovery tokens to affected users.
• Token Buyback: The exchange will buy back these tokens over time using profits from future operations.
• Compensation Goal: Wazir targets returning about 75% to 80% of lost user funds.
• Resuming Operations: If approved, WazirX aims to restart trading and begin compensation within 10 business days.

This plan tries to protect the company’s liquidity while giving users a fair chance to recover losses.

Wazir’s Proposed Scheme of Arrangement Awaiting Court Approval – Economic Times For detailed insights on the upcoming court hearing and plans for user compensation, several recent news articles provide valuable context:

• WazirX to get day in court next month with payouts after 10 days if recovery plan is approved – CoinDesk
• WazirX confirms restart on track as it awaits sanction hearing in May – CoinTelegraph
• WazirX Eyes Comeback as Court Ruling on Restructuring and Compensation Nears – 99Bitcoins
• WazirX News: Relaunch Could Begin 10 Days After May 13 Court Ruling – CoinPedia

These articles confirm that if the court sanctions the plan, WazirX aims to begin paying affected users promptly while restarting operations.

Legal and Regulatory Background

Besides the court hearing, there are important legal updates. The Supreme Court of India dismissed a petition from some hack victims. The court advised users to seek help from regulators, not the judiciary. This shows growing trust in regulatory bodies to oversee crypto exchanges and protect investors in India.

What the WazirX Community Is Saying

The trading community and users have mixed feelings on social media. Most are hopeful but cautious about the hearing. Discussions on platforms like Twitter focus on:

• The chances of court approval
• When compensation might begin
• Effects on India’s crypto market

Though there are currently few YouTube videos on the user compensation plan, videos in this space generally highlight the need for clear rules and stronger user protections in Indian crypto exchanges.

What This Means for WazirX Users and Indian Crypto

If the court approves the compensation plan:

• Users will regain trust in WazirX and feel more secure.
• It could set a new example for handling breaches in Indian crypto exchanges.
• WazirX will show commitment to operating under clearer rules.

On the other hand, any delay or rejection could increase doubts, hurting crypto adoption in India.

What Users Should Keep in Mind Going Forward

If the plan gets approved, WazirX will work quickly to restart trading and send recovery tokens. Users should:

• Watch official WazirX channels for updates.
• Stay informed about new crypto regulations in India.
• Be careful about scams or phishing attempts claiming to offer compensation.

Tips for WazirX Users During This Period

• Keep checking WazirX’s official website and verified social media for real news.
• Learn about regulatory changes affecting crypto trading.
• Avoid sharing personal or wallet information with unknown sources.

Conclusion

May 13, 2025, is a key date for WazirX and its community. The court’s decision on the compensation plan will shape the exchange’s future and influence how crypto breaches are addressed in India. WazirX’s plan to return up to 80% of lost funds through recovery tokens and a gradual buyback may restore faith in the platform. This step is crucial for rebuilding trust in India’s growing cryptocurrency market. Users, investors, and the wider crypto community will watch closely as the verdict approaches.