The Singapore High Court has set aside its June 4, 2025, order rejecting WazirX’s restructuring plan and ordered a new creditor vote on an amended scheme, potentially clearing the path for the exchange to reopen and begin distributing funds to users affected by the $230 million hack in July 2024.
The court extended Zettai’s moratorium protection and allowed the revote following further arguments presented by WazirX’s parent company.
If the amended scheme receives approval from the requisite majority of creditors and court sanction, the WazirX platform will reopen with Zanmai facilitating distributions under Indian jurisdiction.
Singapore High Court Has Ruled, Giving Users Hope
The decision marks a dramatic reversal after the court previously rejected the moratorium application, citing concerns about transparency regarding Zettai’s undisclosed relocation to Panama and rebranding as Zensui Corporation.
The earlier rejection exposed WazirX to potential litigation in India and left users without access to funds for nearly one year.
WazirX founder, Nischal Shetty, announced that Proof of Reserves will launch after the platform restarts, stating that current token balances remain unchanged since no deposits or withdrawals are being processed.
An independent assessor has already verified current holdings and submitted the report to the court and creditors.
Additionally, the exchange initially pledged to return 85% of user balances through recovery tokens representing unrecovered funds, though legal challenges and investor objections have stalled progress.
Users have expressed frustration over repeated delays and a lack of transparency throughout the recovery process.
Court Reversal Provides Second Chance for Fund Recovery
The Singapore High Court’s decision to allow a revote followed months of legal uncertainty after the initial restructuring plan faced rejection. The court had previously declined to sanction WazirX’s proposal due to transparency issues surrounding Zettai’s corporate restructuring and relocation activities.
WazirX had secured a four-month conditional moratorium in September 2024, which protected the company from litigation in different regions. The June 4 rejection also opened the door for Indian users to file litigation domestically to seek recovery of their locked funds.
The exchange warned users in February that repayments could be delayed until 2030 if the court rejected the restructuring plan, potentially forcing the company into liquidation. A successful restructuring would allow faster, structured repayments with possible profit-sharing benefits.
More than 93% of voting creditors approved the initial restructuring plan in April 2025; however, legal complications and resistance from Zettai delayed its implementation.
The amended scheme addresses court concerns while maintaining the core framework for user compensation.
The Monetary Authority of Singapore issued a notice on May 30 requiring all unlicensed exchanges operating in Singapore to cease services by June 30.
Zettai’s relocation to Panama and rebranding as Zensui Corporation were intended to address regulatory compliance issues.
How WazirX Got Here: The Big Disaster
The WazirX hack in July 2024 resulted from hackers exploiting vulnerabilities in the exchange’s multisig wallet system, manipulating the interface to trick authorized signers into approving a malicious smart contract upgrade.
The attack bypassed established security measures and drained approximately $230 million in cryptocurrency assets. The hack also exposed ownership conflicts between Zettai and Binance regarding WazirX operations, complicating the restructuring process.
Users have demanded greater transparency and implementation of Proof of Reserves to prevent future security incidents.
WazirX plans to issue recovery tokens as on-chain IOUs representing unrecovered funds, designed to help users claim between 75% and 80% of their affected balances, depending on market conditions.
However, the tokens remain speculative pending successful completion of the restructuring process.
The exchange has committed to completing the revoting process as quickly as possible, with distributions beginning promptly if the amended scheme receives approval.
Users await concrete timelines for the voting process and the potential reopening of the platform, which has been suspended for nearly a year.
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