WazirX Unveils Revised Recovery Plan After Court Rejection

WazirX CEO Nischal Shetty has unveiled a revised recovery plan following the rejection of the original proposal by the Singapore High Court. The new plan, which involves a shift in the entity responsible for fund distribution, is currently under consideration by the court. If approved, this revised approach could potentially restart the distribution of funds to affected users within weeks, offering a glimmer of hope to those who have been waiting for nearly a year since the $230 million hack.

The original restructuring plan was dismissed by the Singapore court primarily due to regulatory concerns. However, Shetty has indicated that the court is open to revisiting the case, provided that creditors vote again. The key amendment in the new proposal is the replacement of Zettai with Zanmai, an Indian firm already managing INR-crypto trading pairs on WazirX. This change is significant as Zanmai is registered with Indian regulators, which could alleviate compliance issues and expedite the process.

Shetty has expressed readiness to move forward swiftly once the new vote is conducted. He stated that the voting date will be announced soon, and if the vote is successful, fund distribution could commence within a matter of weeks. However, many users remain skeptical due to past experiences of poor communication, delays, and perceived pressure tactics from the exchange. The $230 million hack in July 2024 not only caused financial damage but also eroded trust among users, who have been frustrated with the handling of the situation.

Despite the skepticism, this revised plan presents a potential turning point for WazirX. The involvement of a regulated Indian entity like Zanmai could help rebuild confidence among users and creditors. The outcome of the upcoming vote will be crucial. If it passes, it could mark a significant milestone in one of India’s largest crypto recovery cases. Conversely, if it fails, WazirX may find itself back at the starting point, facing an uncertain future.