WazirX Granted Extension for Restructuring Plan After $234 Million Hack

The Singapore High Court has extended WazirX’s legal moratorium, granting the Indian cryptocurrency exchange a final opportunity to present arguments for its proposed restructuring plan. This decision comes nearly a year after a significant hack that resulted in the loss of $234 million in digital assets, leaving users in limbo regarding fund recovery. The moratorium, which was set to expire on June 6, 2025, has been extended until the court hears and rules on the new arguments presented by WazirX. This extension shields the exchange from legal action while it works on restructuring its operations and settling obligations.

The court's previous rejection of WazirX’s restructuring plan was due to transparency concerns about its parent company, Zettai Pte Ltd. In response, WazirX proposed relocating its operations to Panama under a newly formed entity called Zensui Corporation. The court's latest decision offers WazirX one more chance to gain formal approval for its Scheme of Arrangement, a legal process aimed at reorganizing operations and settling obligations.

Since the July 18, 2024, breach, WazirX users have been without access to their funds. The company initially pledged to return 85% of user balances, but progress has been hindered by legal challenges, unclear communication, and investor objections. WazirX's latest update stated that they are awaiting directions from the court and will keep users informed as soon as more clarity is available. However, no concrete timelines for hearings, rulings, or user repayments were provided.

As part of its restructuring plan, WazirX intends to issue recovery tokens, which are on-chain IOUs representing unrecovered funds. These tokens are designed to help users claim between 75% and 80% of their hacked balances, depending on market conditions. However, the speculative nature of these tokens has led to waning user confidence.

Despite 93% of voting creditors approving the restructuring plan in April 2025, legal complications and resistance from Zettai Pte Ltd have delayed its implementation. Users and community members have expressed frustration over the lack of transparency and the delay in progress. The court's extension feels more like a pause than progress for affected users, who were expecting a final decision by June 20.

In February, WazirX outlined two possible repayment outcomes. If the court approves the restructuring plan, a faster, structured repayment process could be implemented, potentially including profit-sharing benefits. However, if the plan is rejected, repayments could be delayed until 2030, potentially forcing the company into liquidation. Liquidation would involve lengthy legal proceedings, higher costs, and reduced payouts for users.