India’s once-leading crypto exchange, WazirX, is facing fresh trouble after the Singapore High Court declined to approve its restructuring plan, throwing creditor repayments into indefinite uncertainty once again.
The plan, which aimed to begin creditor payouts by April 2025, had previously received initial court approval in January following a devastating $230 million hack linked to North Korea’s Lazarus Group. WazirX had proposed a path to recovery that included launching a decentralized exchange (DEX), issuing recovery tokens, and buying back tokens to support liquidity. However, with the court’s recent decision, the repayment timeline has collapsed, leaving creditors in limbo.
Following the Singapore court’s rejection of its restructuring plan, WazirX is now relocating operations to Panama and rebranding under a new entity. Recently, the exchange shared redacted legal documents with users via email, revealing that its parent company, Zettai, is setting up a subsidiary called Zensui Corporation in Panama. The move signals a strategic shift as WazirX attempts to reset its crypto services under a new jurisdiction, possibly to regain operational flexibility and distance itself from ongoing legal and financial challenges.
The Singapore court’s refusal now threatens to push WazirX into liquidation under Section 301 of the Companies Act. If that happens, remaining assets may be sold at fire-sale prices, resulting in significantly lower compensation for affected users. Despite the setback, WazirX said in a note to creditors that it remains committed to legal compliance and hopes to begin distributions “as soon as possible.”
Once a dominant force in India’s crypto trading scene, WazirX’s credibility is in question due to poor communication, limited asset recovery, and an almost complete shutdown of user interaction on social media platforms. Moreover, this latest court ruling casts serious doubt over the platform’s future and signals deeper challenges for its path to redemption.
WazirX lost $230 million in a hack; its parent company filed for moratorium to work on a repayment plan under Singapore law.
The parent company is working on a court-approved repayment plan, but full reimbursement depends on legal outcomes.
Users can still access services, but operations will be under Zensui. Regulatory and service changes may follow as updates roll out.
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