Crypto Journalist

Anas Hassan

Crypto Journalist

Anas Hassan

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Anas is a crypto native journalist and SEO writer with over five years of writing experience covering blockchain, crypto, DeFi, and emerging tech.

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Last updated: 

August 19, 2025

Indian crypto exchange WazirX has secured overwhelming creditor support, with more than 95% of voters backing its latest restructuring proposal, which now awaits regulatory approval from the Singapore High Court.

The creditor vote on the restructuring framework means the plan now requires judicial endorsement from Singapore’s court to authorize the Amended Scheme following the platform’s hacking incident.

According to a recent statement, WazirX Founder Nischal Shetty outlined that the restructuring blueprint includes platform preparations to restart operations and restore trading services for users “within 10 business days of the scheme taking effect.”

WazirX Creditor Voting Results and Process

The voting process, coordinated by parent entity Zettai Pte Ltd., was conducted through Kroll Issuer Services between July 30 and August 6, with eligibility restricted to account holders maintaining positive balances as of July 18, 2024.

A total of 149,559 creditors representing $206.9 million in validated claims took part in the process.

Among all participants, 143,190 creditors representing $195.7 million endorsed the proposal, exceeding the statutory thresholds established under Section 210(3AB) of the Singapore Companies Act 1967.

WazirX highlighted the results across social media platforms, disclosing that precisely 95.7% of participating Scheme Creditors backed the Amended Scheme of Arrangement.

The cryptocurrency exchange stated that “this outcome reaffirms the strong support shown in the first round of voting and reflects our community’s continued confidence in the restructuring plan.”

The restructuring framework proposes asset distribution through Zanmai India, which operates under India’s Financial Intelligence Unit oversight, designed to maintain transparency and regulatory compliance.

Following court acceptance of the filing, Zettai will notify creditors via official communications, including copies of the relevant legal documentation.

This represents the second restructuring vote to advance after the Singapore Court previously dismissed the initial proposal.

Although the first plan also received majority creditor support, judicial authorities expressed concerns regarding the proposal’s equity and practical viability.

During that period, the exchange faced criticism from frustrated creditors who alleged fraudulent behavior due to extended delays.

The platform initially committed to asset redistribution by February 2025, leading many to suspect the exchange was exploiting legal complications to postpone user repayments.

Subsequently, in June, WazirX filed for reconsideration, and the court permitted additional arguments while extending the protective moratorium.

By August 2025, judicial authorities mandated a second vote on the modified restructuring scheme, providing WazirX another opportunity to advance its proposal.

WazirX Creditors Uncertain About Recovery Timeline of Funds

A disaster occurred in July 2024 when the WazirX platform suffered a cyberattack allegedly orchestrated by North Korea’s Lazarus Group, based on intelligence from the U.S. Department of State.

The incident resulted in losses exceeding $230 million, representing 45% of the platform’s total $500 million in holdings.

WazirX’s Singapore-registered parent company, Zettai Pte Ltd, immediately pursued creditor protection and received a four-month moratorium from Singapore’s High Court in September 2024, providing time to develop a comprehensive restructuring strategy.

Despite the positive voting outcome, WazirX customers remain skeptical about fund recovery prospects.

In February, the cryptocurrency exchange disclosed that reimbursements might face delays, potentially extending until 2030, contingent on the restructuring scheme’s final approval status.

The company’s communication outlined dual scenarios, one pathway if the restructuring gains approval and an alternative if rejection occurs.

Based on WazirX’s published framework, successful restructuring would enable systematic repayment scheduling, allowing creditors to recover assets more efficiently.

However, if the scheme faces rejection, creditors might endure prolonged uncertainty while the company’s ownership disputes remain unresolved.

If WazirX proceeds to liquidation, creditors may experience reduced recoveries due to liquidation expenses and the absence of recovery enhancement mechanisms.

The company also warned that extended proceedings could result in creditors missing future market appreciation, as asset values may diminish by the time of final distribution.

WazirX, once India’s largest crypto exchange by trading volume, has secured a crucial extension from Singapore’s High Court as it struggles to recover from a devastating $234 million hack and a year of growing user frustration.

In a statement posted on social media, WazirX confirmed that the court will allow it to present new arguments supporting a revised restructuring plan and has extended the moratorium shielding the company from creditor lawsuits until a ruling is made.

The legal reprieve buys WazirX time to salvage its controversial Scheme of Arrangement, a court-supervised process intended to reorganize its operations and settle claims from creditors and over 400,000 affected users worldwide.

The exchange’s troubles began in July 2024, when hackers exploited security flaws to drain digital assets from customer wallets, making it one of the largest breaches to hit an Asian crypto platform that year.

In the months that followed, WazirX’s promises to reimburse users ran aground amid unclear communication, internal disputes with parent firm Zettai Pte Ltd, and growing concerns from regulators about fund tracing and governance.

To reassure creditors and regulators, WazirX has floated a plan to transfer its core business to a new entity, Zensui Corporation, registered in Panama.

The company said this would help distance the exchange from Zettai’s lingering corporate complications and give it the flexibility to issue so-called recovery tokens, blockchain IOUs pegged to unrecovered balances.

These tokens are intended to help users gradually reclaim between 75% and 80% of the crypto lost in the breach, with the actual payout tied to future market conditions and platform revenue. However, for many, the tokens are an untested solution that does little to guarantee timely restitution.

Despite these uncertainties, more than 93% of voting creditors backed the restructuring plan in April. However, the Singapore High Court declined to grant final approval last month, citing gaps in transparency and governance.

Without an approved plan, WazirX faces the prospect of forced liquidation. Legal experts warn that a court-ordered wind-down could drag on for years, consume significant funds in legal fees, and leave creditors with lower overall recovery rates. In a worst-case scenario, the exchange has warned that user repayments could be pushed back as far as 2030.

Friday’s extension marks what many see as the final opportunity for WazirX’s leadership to convince the court, and its wary community, that a structured recovery is still possible.

The exchange said in its statement:

“We are awaiting the court’s directions on the next hearing and will share updates as soon as we have clarity.”

No date has been announced for the next proceedings, leaving thousands of users still locked out of their accounts for nearly a year.

The exchange now faces a fragile path forward, balancing court demands for governance reforms with the urgent need to restore customer trust in an industry still reeling from high-profile collapses like FTX and Zipmex.

For users, the extension provides a flicker of hope but few guarantees, and until the court signs off on a final plan, their crypto remains out of reach.

Mentioned in this article

Singapore-based Wajirux is moving its base to Panama after a local court opposed the restructuring plan. Crypto Exchange announced the court’s decision via a post on June 4, 2025.

In an email shared with the userbase, Wazirx detailed a recently compiled document revealing that Wazirx’s parent company Zettai will be rebranding the region’s brand.

The document states, “Zettai has taken steps to incorporate its subsidiary Zensui Corporation in the Republic of Panama, preparing to move the platform’s cryptocurrency-related services to Zensui.”

The news comes as Singapore’s central bank requires local crypto service providers to halt digital token services to overseas markets. The deadline for this mission is June 30th, 2025.

The court’s decision seems likely to cause payment rollouts to hit a massive obstacle, delaying refunds to those affected by the hack. In an email to creditors, Wazirux said: “The Honorable High Court of Singapore has issued an order denying approval of the proposed restructuring plan.”

The Honorable High Court of Singapore has issued an order denying approval of the proposed restructuring plan. Although this result was not what we expected, we are fully committed to respecting the court’s decisions and abide by all legal and regulatory processes.

Our primary… pic.twitter.com/jrxffwnmba

– Wazirxindia: India KA Bitcoin Exchange (@wazirxindia) June 4, 2025

Interestingly, the court first approved the Wazirx plan in January. This is because they were seeking protection from liquidation following a $230 million hack by the North Korean Lazarus Group. Wazirx’s plan outlined the process by which creditors could vote on whether or not they would accept the terms.

Currently, if the restructuring fails as creditor repayment timelines are again cast into uncertainty, Waxilx could face liquidation under Section 301 of the Singapore Business Act, resulting in the sale of the remaining assets of the Company.

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Zensui issues Wazirx Recovery token

Zettai will incorporate its subsidiary Zensui into Panama on March 10, 2025 and will take over future business. They have already concluded an agreement to transfer Zettai’s business to a new subsidiary, and once they do so, Zensui will receive cryptocurrency services within 2-3 business days.

Additionally, Zensui oversees the issuance of Wazirx recovery tokens as part of the company’s compensation strategy for those affected by the hack. The company also said it does not seek a license to continue its operations in Singapore or register with the Indian Financial Information Unit.

The recovery token issued by Zensui will probably act as an on-chain Iou (I borrow you). It is designed to be created against each creditor on the exchange and represents an unresolved claim that is not covered by the initial distribution.

It also serves as a way to track the remaining balance of users. Token holders receive periodic distributions funded by Wazirx’s profits and recovered assets.

Additionally, creditors were heavily supportive of Wajirux’s post-hack restrictions plan, as more than 90% of voted creditors support the scheme. Wazirx previously said that tokens could potentially restore 75% to 80% of the user’s account balance when hacked.

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Embattled Indian crypto exchange WazirX’s restructuring plan has hit a major snag, with the Singapore High Court declining to approve the crypto exchange’s proposed scheme to repay creditors.

The decision effectively delays any payouts that were expected to begin as early as April 2025. “The Honourable Singapore High Court issued an order declining to approve our proposed restructuring plan,” WazirX said in an email to creditors.

“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 focus remains to begin distributions as soon as possible,” it claimed.

The court initially approved WazirX’s plan in January after the exchange sought protection from liquidation in the wake of a devastating $230 million hack by North Korea’s Lazarus Group.

The scheme would have allowed creditors to vote on whether to accept the plan, with payouts promised within 10 business days of activation.

That plan also included launching a decentralized exchange (DEX), issuing recovery tokens, and implementing periodic buybacks to support liquidity.

But with the court’s latest decision, the timeline for creditor repayment has again been thrown into uncertainty. If the restructuring ultimately fails, WazirX could face liquidation under section 301 of the Singapore Companies Act, which might result in fire-sale prices for remaining assets and lower compensation for creditors, as previously reported.

WazirX has faced overwhelming criticism for its slow communication and limited success in asset recovery, and severely limiting the ability for users to interact with its social media accounts.

The exchange once dominated crypto trading in India, but many are now left wondering if they will ever see their money again.