Wazirx Nears Restart as 95.7% Creditor Approval Clears Path for Court Sanction

Indian crypto exchange Wazirx has secured significant creditor approval for its restructuring plan and is now awaiting final court sanction to restart operations. On Aug. 18, 2024, the exchange announced that 95.7% of voting creditors—143,190 individuals representing $195.7 million in claims—approved the amended scheme of arrangement [1]. This follows a July court ruling by the Singapore High Court that extended Wazirx’s moratorium and overturned an earlier rejection of its restructuring framework [1]. The vote, conducted from July 30 to Aug. 6, was organized by parent company Zettai Pte Ltd. and administered by Kroll Issuer Services, with only creditors holding positive balances as of July 18, 2024, eligible to participate [1].

The restructuring plan proposes distributing recoveries through Zanmai India, an entity operating under India’s Financial Intelligence Unit, to ensure transparency and compliance [1]. Independent assessors Joshua Taylor and Henry Anthony Chambers from Alvarez & Marsal verified the voting results, which were formally communicated to creditors via email [1]. Zettai has since submitted an amended summons in HC/SUM 940/2025 to the Singapore Court for final approval [1].

Founder Nischal Shetty reiterated the significance of the outcome, stating that the next step is to wait for the court hearing. If approved, the platform expects to restart within 10 business days [1]. This would mark a swift return after months of uncertainty for users and stakeholders [1]. The approval of the restructuring plan underlines the credibility of the proposed framework and reflects the community's confidence in Wazirx’s revival strategy [1].

The court’s decision will not only determine the future of Wazirx but also set a potential precedent for similar insolvency cases in the crypto sector. The platform’s creditors have agreed to convert a significant portion of their claims into equity in the restructured company, aiming to stabilize its financial position and support long-term viability [1]. This approach is seen as a critical step in aligning the platform with sustainable operations and regulatory expectations [1].

The broader implications of the case extend to the legal and financial frameworks governing crypto asset management in India. Wazirx’s situation highlights the challenges of managing rapid growth while maintaining sound risk controls. If the court grants approval, the platform may begin phased operations with a focus on user onboarding, security enhancements, and the reintroduction of trading pairs [1]. It has also indicated its intention to comply with upcoming regulatory guidelines, aligning its operations with India’s evolving crypto landscape [1].

Source: [1] Wazirx Awaits Court Green Light to Restart Platform After Massive Creditor Approval, Bitcoin.com (https://news.bitcoin.com/wazirx-awaits-court-green-light-to-restart-platform-after-massive-creditor-approval/)