Singapore Court's WazirX Ruling Sets Asia Crypto Insolvency Precedent

The Singapore High Court has approved WazirX's revised restructuring plan, clearing the way for the Indian cryptocurrency exchange to resume operations and begin repaying users affected by a $234 million hack in July 2024. The court's decision, announced on October 13, 2025, follows a second vote by creditors, who supported the plan with 95.7% approval by number and 94.6% by value WazirX gets Singapore court nod for restructuring scheme, to restart operations in 10 days^[1]. This marks a pivotal moment for WazirX, which had previously faced rejection from the court in June 2025 due to concerns over regulatory compliance and transparency Singapore Court approves WazirX’s restructuring plans following …^[3].

The restructuring plan, proposed by WazirX's parent entity Zettai Pte Ltd, includes a structured repayment mechanism for creditors, with initial distributions expected within 10 business days of the court's approval. Users will receive 52% of recovered assets in liquid crypto or cash and 48% in recovery tokens tied to WazirX's future earnings . The court-sanctioned scheme also mandates that Zettai file the order with Singapore's Accounting and Corporate Regulatory Authority (ACRA) to formalize the process WazirX gets Singapore court nod for restructuring scheme, to restart operations in 10 days^[1].

WazirX's CEO, Nischal Shetty, called the approval "one of the fastest restructurings in the global crypto industry," despite the challenges posed by the hack, which he attributed to the North Korean Lazarus Group Singapore Court approves WazirX’s restructuring plans following …^[3]. The exchange, which suspended operations in July 2024 after the cyberattack, has partnered with BitGo, a leading digital asset custodian, to enhance fund security and rebuild user trust WazirX gets Singapore court nod for restructuring scheme, to restart operations in 10 days^[1].

The path to approval was fraught with legal hurdles. The court initially rejected WazirX's restructuring plan in June 2025, citing concerns over how recovery tokens would interact with Singapore's proposed regulatory framework for digital token service providers Singapore court approves WazirX restructuring plan after $234M …^[4]. The revised plan addressed these issues, including clearer terms for creditor protections and asset distribution. The overwhelming support from creditors-95.7% by number and 94.6% by value-underscored confidence in the revised proposal WazirX gets Singapore court nod for restructuring scheme, to restart operations in 10 days^[1].

The hack, which exploited vulnerabilities in WazirX's multi-sig wallet, forced the exchange to halt withdrawals and trading, leaving over 150,000 users in limbo. While the court's approval brings relief, repayment timelines remain uncertain. Shetty projected a swift restart, but restructuring advisor George Gwee of Kroll noted users might face a two- to three-month delay before receiving funds Singapore court approves WazirX restructuring plan after $234M …^[4].

Legal experts highlight the broader implications of the ruling. The Singapore High Court's validation of WazirX's restructuring sets a precedent for crypto insolvency cases in Asia, where regulatory frameworks remain fragmented. By pursuing restructuring in Singapore-a jurisdiction with clearer insolvency laws-WazirX has demonstrated how exchanges can navigate legal complexities to protect users and creditors Singapore Court Approves WazirX Restructuring Plan^[5].

However, critics argue the plan shifts risks to users. Repayments are pegged to July 2024 prices, meaning users miss out on gains from the subsequent crypto bull market. Additionally, some victims accuse WazirX of opaque practices, including alleged attempts to transfer assets to a Panama-based shell company, Zensui, to avoid Singaporean oversight .

The court's decision also underscores the growing trend of Indian crypto firms seeking regulatory clarity in jurisdictions like Singapore. With India's crypto regulatory environment still evolving, WazirX's case highlights the importance of international legal frameworks in stabilizing digital asset markets Singapore Court Approves WazirX Restructuring Plan^[5].

As WazirX moves forward, the exchange faces the dual challenge of rebuilding user trust and complying with stringent security and regulatory standards. The restart of operations and token distributions will be closely watched, not only by its users but also by global regulators and industry stakeholders navigating the uncharted waters of crypto insolvency.

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