WazirX Restructuring Plan Rejected By Singapore High Court; Crypto Firm to Appeal Decision

WazirX has confirmed that it will appeal against the court's decision.

Written by Radhika Parashar, Edited by David Delima | Updated: 4 June 2025 20:53 IST

Photo Credit: WazirX

WazirX said it is presently exploring all available legal options

Highlights

The next steps for the reimbursements remain undisclosed
93 percent WazirX users had approved the scheme in April
The reason for the court rejecting the approval remains unknown

WazirX users who lost their funds in the $230 million (roughly Rs. 1970 crore) hack last year, may have to wait longer to receive reimbursements from the crypto exchange. On Wednesday, the High Court of Singapore rejected WazirX's restructuring scheme, according to an update posted by the exchange on X (formerly Twitter). This restructuring scheme, according to WazirX, was approved by a majority of its creditors in April. However, the crypto firm has failed to get the approval of the court, which is required to execute this scheme.

In its post on X, WazirX said that it did not anticipate this outcome. "Our primary focus remains to begin distributions as soon as possible. Towards this goal, we are currently evaluating all available legal options in consultation with our legal and advisory teams, and will be appealing against the decision of the Singapore High Court," the firm said.

The Honourable Singapore High Court issued an order declining to approve our proposed restructuring plan. While this outcome was not what we anticipated, we respect the Court's decision and remain fully committed to complying with all legal and regulatory processes.

Our primary… pic.twitter.com/jrXFFwnMBA
— WazirX: India Ka Bitcoin Exchange (@WazirXIndia) June 4, 2025

Zettai, WazirX's majority stakeholding entity, is registered in Singapore. After one of its multi-sig wallets under Liminal Custody's oversight was allegedly hacked last year, the exchange moved a Singapore court for a moratorium and sought approval from its users for a restructuring scheme. Zettai has worked with financial restructuring firm Kroll to design its reimbursement roadmap in Singapore.

In January, the court reviewed the restructuring scheme and allowed the firm to approach creditors.

Australia Limits Crypto ATM Transactions to AUD 5,000

Four months later, Zettai said 141,476 creditors participated in the voting process and a majority — 131,659 voters (or 93 percent) — approved the plan.

On May 16, the court deferred the case to another date and directed WazirX and Zettai to submit additional documentation. At the time, the court also extended the exchange's moratorium until June 6. It's currently unclear whether WazirX will appeal for another extension that has safeguarded it against new legal cases.

Starknet Foundation’s James Strudwick on the Sluggish Growth of Web3 Gaming

"Today's decision does not impact the NLPA (net liquid platform assets), which remain safe. More updates will follow in due course," the exchange said in its post on X.

Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.