An Indian court has taken decisive action regarding WazirX’s XRP distribution procedures in connection with the 2024 security incident that impacted the exchange. This judicial development emerges shortly after a Singaporean court sanctioned a restructuring proposal for Zanmai Labs, WazirX’s parent entity, potentially affecting user asset distributions across both jurisdictions.
The court’s intervention focuses specifically on the methodology and timeline for XRP token redistribution to affected users following the security compromise. Legal representatives for both the exchange and user groups presented arguments during proceedings that examined the technical implementation of asset recovery and distribution protocols.
This legal scrutiny comes amid ongoing investigations into the 2024 breach that temporarily disrupted WazirX’s operations. The exchange had previously committed to compensating users for losses incurred during the incident, with XRP holdings representing a significant portion of the affected digital assets.
Market observers note that the Indian court’s involvement adds another layer of regulatory oversight to the exchange’s recovery process, potentially establishing precedents for how cryptocurrency platforms handle asset distribution following security incidents. The timing of this development, following closely on the Singaporean court’s approval of corporate restructuring, highlights the complex international dimensions of cryptocurrency exchange operations and user protection.
Legal experts suggest the court’s ruling could influence how digital asset platforms implement security protocols and manage user fund distributions in future incident response scenarios.
