WazirX Crypto Recovery Plan Gets 93% Support, But Delhi Court Raises Red Flags

WazirX has made major progress in its efforts to recover user funds lost during last year’s cyberattack. On April 7, 2025, the crypto exchange’s debt restructuring plan received strong backing from creditors. The Scheme of Arrangement, proposed by parent company Zettai Pte Ltd and filed with the Singapore High Court, was approved by 93.1% of creditors, representing 94.6% of the total claim value.

But while things seem to be moving forward on one front, fresh trouble is brewing in India.

Here’s what’s happening—and why it matters.

Over a Lakh Creditors Back the Plan

More than 1.4 lakh creditors participated in the vote, with over 1.3 lakh voting in favor of the plan. The next step is to get the green light from the Singapore High Court. If approved, WazirX will begin distributing funds within 10 business days and will gradually restart trading and withdrawals.

“We are grateful for the strong vote of confidence,” remarked Nischal Shetty, Founder of WazirX. “This consistent support across our entire base demonstrates shared belief in our restructuring approach and recovery plan.”

Delhi HC Questions Crypto Restructuring

While WazirX moves ahead with its recovery plan, it’s also facing legal heat in India. The Delhi High Court has stepped in after complaints that the exchange is restructuring user crypto assets without permission. Petitioners say changes are being made even to assets that weren’t affected by the July 2024 cyberattack.

On March 28, 2025, the court issued a notice after a petition was filed by Sudhir Verma and Kunal Dhariwal against the Union of India. The petition questions how WazirX is handling user assets and highlights concerns around user consent and transparency.

Users Question Asset Handling and Consent

The petition is part of a larger case that began in October 2024. It calls for a halt to the ongoing restructuring of user assets without proper approval. The court has given the government two weeks to respond. The case has raised serious questions about user rights and the protection of personal data.

At the center of the issue is a Scheme of Arrangement dated March 12, 2025, from Zettai Pte Ltd. The petitioners argue that ₹2,700 crore worth of crypto assets were not impacted by the cyberattack, yet these are now being included in a broader ₹4,400 crore restructuring. The plan involves rebalancing and selling assets to cover debts and operational expenses, including ₹259 crore in legal and administrative fees.

Were Users Forced to Give Up Legal Rights?

According to the petition, users are being forced to give up their right to take legal action and must agree not to hold the platform responsible—even if they don’t support the plan. The voting process itself has also come under fire, with concerns about fairness since it was managed by a private advisor.

Privacy concerns are growing as well. The petition says that personal and financial data of more than 4 lakh Indian users is being shared with foreign companies—raising alarms over user privacy and data safety.

Petitioners Call for Investigation

The petitioners also argue that taking the case to the Singapore High Court is an attempt to avoid Indian legal oversight. They fear this could prevent Indian users from getting proper legal help or protection.

To address this, they’ve asked the court to form a Special Investigation Team (SIT) made up of experts in cybercrime, financial fraud, and digital assets. This team would look into the cyberattack and ensure that Indian laws are followed. The next court hearing is set for April 29.

What started as a hack has now turned into a legal and ethical minefield – and it’s far from over.