Court Greenlights WazirX's Restructuring Amid Legal Battles and Trust Woes

Singapore's High Court has sanctioned a revised debt restructuring plan for Zettai Pte Ltd., the parent company of Indian cryptocurrency exchange WazirX, after 95.7% of voting creditors-representing 94.6% by value-approved the scheme in August 2025. This marks a pivotal step in WazirX's recovery following a $234 million hack in July 2024, one of the largest cyberattacks in the crypto industrySingapore Court Sanctions Zettai’s Creditor-Approved Restructuring Scheme^[1]. The court's approval, granted with modifications, allows the platform to resume operations within 10 business days once the plan becomes legally effectiveWazirX moves to repay users as Singapore court approves recovery plan^[2].

The restructuring plan, which was resubmitted after initial rejection in June 2025 due to procedural flawsWazirX moves to repay users as Singapore court approves recovery plan^[2], outlines a structured repayment model. Affected users are expected to recover approximately 55% of their lost assets, split between liquid crypto/cash and recovery tokens tied to WazirX's future earnings. The plan also mandates token distributions to creditors and the restart of trading and withdrawal services, overseen by Zettai's collaboration with BitGo, a leading digital asset custodianSingapore Court Sanctions Zettai’s Creditor-Approved Restructuring Scheme^[1].

Nischal Shetty, WazirX's founder, called the court's decision "one of the fastest restructurings in the global crypto industry," emphasizing the platform's commitment to creditor interestsSingapore Court Sanctions Zettai’s Creditor-Approved Restructuring Scheme^[1]. Zettai will now file the court order with Singapore's Accounting and Corporate Regulatory Authority (ACRA), with operations slated to resume by late October 2025WazirX moves to repay users as Singapore court approves recovery plan^[2]. The Indian entity, Zanmai Labs, will handle fiat transactions under domestic regulationsWazirX moves to repay users as Singapore court approves recovery plan^[2].

Despite the approval, challenges persist. Some creditors, including CoinSwitch, continue legal battles to recover frozen assetsWazirX moves to repay users as Singapore court approves recovery plan^[2]. Investigations revealed the hack exploited vulnerabilities in multi-signature protocolsWazirX News: Singapore Clears Plan for Restart, Bringing Respite^[4], a flaw that has raised broader concerns about custody practices in cross-border crypto operations. Additionally, critics argue the repayment plan locks users into July 2024 prices, potentially diluting gains from the subsequent crypto bull market.

The court's ruling also faces scrutiny over transparency. The Delhi High Court recently ordered WazirX to disclose its acquisition agreement with Binance, while the Bombay High Court mandated a bank guarantee for CoinSwitch's $5 million claimWazirX moves to repay users as Singapore court approves recovery plan^[2]. These legal hurdles highlight the complex landscape of crypto regulation and accountability in India.

WazirX's roadmap includes launching a decentralized exchange (DEX) and periodic buybacks of recovery tokens using platform profitsWazirX News: Singapore Clears Plan for Restart, Bringing Respite^[4]. However, rebuilding user trust remains a critical challenge. With over 149,559 creditors participating in the revote, the exchange must now deliver on promises of timely disbursements and operational stability.

As the platform prepares for relaunch, stakeholders are watching closely. The outcome will test WazirX's ability to restore confidence in a sector still grappling with security and regulatory uncertainties. For now, the court's approval offers a fragile but necessary foothold in the exchange's path to recovery.

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