Singapore's Court-Supervised Crypto Rescue Paves Path for Industry Recovery

The Singapore High Court has approved WazirX's debt restructuring plan, marking a pivotal step in the Indian crypto exchange's recovery from a $234.9 million hack in July 2024. The ruling, announced on October 13, 2025, clears the way for the exchange to resume operations and begin repaying creditors, with initial withdrawals and trading expected to restart within 10 business daysWazirX moves to repay users as Singapore court approves recovery plan^[1]. The approval follows a revised proposal that secured 95.7% support from creditors by number and 94.6% by value, addressing procedural flaws and regulatory concerns that led to the rejection of an earlier planWazirX News: Singapore Clears Plan for Restart, Bringing Respite^[2].

The hack, attributed to North Korea's Lazarus Group, exploited vulnerabilities in WazirX's multi-signature wallet system, draining funds and freezing user assets. The court-approved plan outlines a structured repayment model, with affected users potentially recovering up to 55% of their losses in USDT-equivalent value through phased distributionsWazirX Wins Singapore Court Nod for Restructuring Scheme: CEO^[3]. Zettai Pte Ltd, WazirX's Singapore-based parent company, will oversee crypto asset repayments, while Zanmai Labs, its Indian entity, will handle fiat transactions under domestic compliance rulesWazirX gets Singapore court nod for restructuring scheme, to restart operations in 10 days^[4].

CEO Nischal Shetty hailed the decision as a "crucial milestone," emphasizing the company's commitment to rebuilding trust through transparency and value creationWazirX Secures Singapore Court Approval to Repay Users After $234M Hack^[5]. However, challenges persist. Some creditors, including CoinSwitch, continue legal battles to recover frozen assets, with the Bombay High Court recently ordering Zanmai Labs to provide a bank guarantee for CoinSwitch's $5 million claimSingapore court sanctions crypto exchange WazirX’s creditor-approved restructuring scheme^[6].

Security upgrades are central to WazirX's relaunch strategy. The exchange has partnered with BitGo, a leading custodian, to enhance asset protection and has begun testing secure fund transfer systemsSingapore Court sanctions WazirX restructuring scheme^[7]. Despite these measures, the incident has highlighted systemic risks in crypto custody and cross-border regulatory frameworks, prompting calls for stricter industry standardsSingapore Court approves WazirX’s restructuring plans following $230M hack^[8].

Market observers note that WazirX's success in restoring user confidence will hinge on timely repayments and consistent communication. With over 16 million users-primarily in India-the platform's revival could set a precedent for crisis management in the crypto sectorWazirX Users to Reclaim $235M After Court Restructuring Approval^[9]. Yet, skepticism remains, as some investors demand full transparency and faster resolutions.

The restructuring plan's approval also underscores Singapore's role as a regulatory hub for crypto disputes, with its court-supervised framework enabling a swifter resolution than potential liquidation processesSingapore Court Approves WazirX Plan: Users to Recover 55%^[10]. Analysts suggest that WazirX's ability to execute the plan effectively will determine whether this legal victory translates into a broader recovery for the exchange and its users.