WazirX Reimbursement Plan Faces Delay as Singapore Court Extends Existing Moratorium to June 6

WazirX recently concluded the customer voting on its restructuring scheme designed to compensate users affected by the hack incident in July last year. After a majority of creditors voted in favour of the proposal, the exchange reported the development to the Singapore High Court, seeking a final nod to start the reimbursement process. However, the court decided to defer the case to another date, and directed WazirX and its parent company Zettai to complete some more documentation work.

The exchange took to X (formerly Twitter) to explain the latest development, which seemingly aggravated the creditors who reacted to the post with sharp criticism. WazirX, however, conveyed through its post that "they are doing everything we can to make this possible under an effective scheme".

For now, the Singapore court has extended its moratorium cover to WazirX and Zettai to June 6. A moratorium can be explained as a legal authorisation to debtors to postpone payments to creditors. During the moratorium period, the debtors are also safeguarded against the filing of any new cases.

Zettai, which is the Singapore-based parent entity of WazirX, first applied for a moratorium in August 2024. What started as an appeal for a thirty-day moratorium, has now been extended to the first week of June.

Last month, WazirX announced that 93 percent of its creditors voted in favour of its proposed restructuring scheme. This scheme includes the issuance of tradeable recovery tokens (RTs) and distribution of recoveries through RT purchase mechanisms.

As per numbers shared by Zettai last month, 141,476 creditors participated in the polling process and accounted for over $195 million (roughly Rs. 1,673 crore) in claims.

The company had committed that the distribution of these RT tokens would begin within seven working days of receiving sanction from the Singapore Court. Creditors will have to wait until June 6 before the case makes any progress.

On July 18, 2024, a WazirX multi-signature wallet — managed under the oversight of Liminal Custody — was compromised in a $230 million (roughly Rs. 1,900 crore) hack. The exchange attributed the breach to North Korean hackers, citing investigative reports. Despite announcing a white hat bounty initiative, the exchange has yet to trace the funds that were stolen last year.