The restructuring plan, filed by WazirX’s parent company, Zettai Pte Ltd, under Singapore’s Companies Act 1967, aims to repay creditors affected by the hack, attributed to North Korea’s Lazarus Group. The plan proposed distributing 75–80% of user funds through cryptocurrency payments and recovery tokens (RTs), which could be traded or held for potential gains from future platform profits. Initial payouts were promised within 10 business days of court approval.
However, the court’s June 2025 rejection led WazirX to explore relocating to Panama and rebranding as Zensui Corporation, though no such move has been confirmed. The July 15 hearing is pivotal, as approval could enable WazirX to resume operations and begin repayments, while rejection might lead to liquidation, delaying recoveries potentially until 2030. The outcome could also influence crypto regulation in Singapore and user trust in centralized exchanges.
WazirX has faced criticism for unclear communication, with users expressing frustration on platforms like X over delays and lack of transparency. The exchange is under a moratorium until at least August 2025, protecting it from new legal actions while it refines its plan. The Singapore High Court hearing on WazirX’s Scheme of Arrangement, scheduled for July 15, 2025, with a reserve date of July 16, 2025, carries significant implications for the cryptocurrency exchange, its users, creditors, and the broader crypto ecosystem, particularly in light of the $234 million hack on July 18, 2024.
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If the court approves the revised restructuring plan, WazirX could begin distributing 75–80% of user funds within 10 business days, primarily through cryptocurrency payments and Recovery Tokens (RTs) tied to future platform profits. This could provide immediate relief to approximately 500,000 affected users, restoring a significant portion of their assets, though not in full.
Approval would allow WazirX to resume operations, potentially relaunching as a decentralized exchange (DEX) under a new structure, possibly rebranded as Zensui Corporation in Panama. This could help rebuild user trust and enable the platform to generate profits to fund further recoveries. A successful restructuring would set a legal precedent in Singapore, a jurisdiction with a progressive crypto framework, for handling exchange insolvencies without liquidation.
This could encourage other hacked exchanges to pursue similar non-bankruptcy resolutions, influencing global crypto regulation Transparent fund distribution, backed by third-party audits and a clear repayment timeline, could restore confidence in WazirX and centralized exchanges more broadly, particularly in India, where WazirX was a leading platform.
If the court rejects the plan, WazirX may face liquidation, potentially delaying user repayments until 2030 due to legal and logistical complexities. This could lead to significant losses for users, as recovered assets might be sold off at depressed prices in a volatile crypto market, exacerbating financial damage. Rejection could intensify user dissatisfaction, already evident on platforms like X, where users have criticized WazirX for vague communication and delays.
This could further erode trust in centralized exchanges and drive users to decentralized alternatives. A failed restructuring might prompt stricter regulations in Singapore and India, particularly regarding proof-of-reserves and security protocols for crypto exchanges. This could reshape the regulatory landscape for centralized exchanges across Asia. With WazirX serving millions of Indian users, a collapse could undermine confidence in India’s crypto sector, potentially slowing adoption and innovation in a rapidly maturing market.
The hearing’s outcome may compel WazirX to disclose forensic reports on the hack, attributed to North Korea’s Lazarus Group, addressing creditor concerns about inadequate security protocols. This could push the industry toward stricter cybersecurity standards and mandatory audits. The case highlights jurisdictional complexities, as WazirX’s parent, Zettai Pte Ltd, operates in Singapore, while most users are in India. The decision could clarify how cross-border crypto disputes are handled, particularly when Indian courts, like the Supreme Court and NCDRC, have dismissed related cases, citing jurisdictional limits.
A successful outcome could bolster investor confidence in crypto exchanges during a bullish market, with Bitcoin trading above $120,000 in July 2025. Conversely, failure might trigger sell-offs and heighten skepticism about centralized platforms, especially amid ongoing volatility. Users have expressed frustration on X over WazirX’s lack of clear communication and shifting timelines, with some accusing the exchange of stalling. The court’s demand for a supplemental affidavit by July 4, 2025, underscores the need for greater transparency, which could influence the hearing’s outcome.
Affidavits, like one filed by user Romy Johnson on July 6, 2025, proposing to release only unhacked tokens, risk delaying recovery and creating division among creditors. Such actions could complicate the court’s decision and prolong uncertainty. The moratorium, extended until at least August 2025, shields WazirX from new legal actions but limits users’ ability to pursue remedies in India, raising questions about the applicability of Singapore’s legal framework to Indian users and Zanmai Labs’ INR services.
WazirX’s potential rebranding and relocation to Panama as Zensui Corporation could streamline operations under a more crypto-friendly jurisdiction but risks alienating users if perceived as evading accountability. The issuance of RTs, tradable and linked to future profits, introduces a novel recovery mechanism but depends on WazirX’s ability to relaunch successfully and generate revenue, which remains uncertain without court approval.
Approval could enable swift partial repayments, platform relaunch, and a strengthened position in the crypto market, while setting a positive precedent for handling exchange hacks. Rejection risks liquidation, prolonged delays, and a loss of user trust, with ripple effects on India’s crypto ecosystem and global regulatory frameworks. The outcome will hinge on WazirX’s ability to address the court’s transparency concerns and unify its creditor base, amidst growing user frustration and regulatory scrutiny.