WazirX, once a titan in India’s bustling crypto market, has hit another roadblock. The Singapore High Court has declined to approve the embattled exchange’s restructuring plan, a move that throws the timeline for creditor payouts into disarray. This decision, delivered in early June, delays payments that were initially slated to start as early as April 2025.
Court Ruling Clouds Repayment Prospects
In a recent communiqué to creditors, WazirX expressed its disappointment with the court’s ruling. “While this outcome was not what we anticipated, we respect the Court’s decision,” the exchange stated, underscoring its commitment to navigating the legal maze and ensuring distributions begin promptly. But with this latest hurdle, the path to repayment seems more convoluted than ever.
It wasn’t always this grim. Back in January, WazirX secured court approval for a plan that would have enabled creditors to vote on the proposed restructuring, promising payouts within ten business days of activation. The plan also mapped out strategies to launch a decentralized exchange (DEX), issue recovery tokens, and conduct periodic buybacks to boost liquidity. Yet, the court’s latest decision has shattered these plans, casting a long shadow over the exchange’s future.
A Rocky Road for WazirX
The backdrop to this saga is the catastrophic $230 million hack orchestrated by North Korea’s Lazarus Group—a hack that left WazirX reeling and scrambling for solutions. Seeking protection from liquidation, the exchange turned to the Singapore High Court. However, the recent ruling raises the specter of liquidation under section 301 of the Singapore Companies Act, which could lead to a fire sale of assets and meager returns for creditors. This comes amid a broader trend of increasing crypto losses, as highlighted in Crypto losses spike 1,100% in April with 5th-largest-ever hack: CertiK.
Criticism has dogged WazirX throughout its ordeal, particularly regarding its sluggish communication and the limited success of its asset recovery efforts. The exchange, once a powerhouse in India’s crypto scene, has seen its reputation tarnished. Users, unable to engage freely with WazirX’s social media, are left grappling with uncertainty—will they ever see their funds again?
Market Ripples and Future Uncertainties
The court’s decision reverberates through the crypto market, raising questions about WazirX’s ability to rebound. Market analysts are watching closely. Some suggest that if WazirX cannot resolve its legal challenges, it might struggle to regain its foothold in the competitive crypto landscape. “The crypto market is unforgiving,” notes crypto analyst Ananya Patel. “WazirX needs a robust plan not just to repay creditors, but to restore trust.” This struggle is part of a larger pattern of instability, as seen in Crypto token failures soar, with 1 in 4 launched since 2021 dying in Q1: CoinGecko.
For many creditors, patience is wearing thin. The extended timeline for payments, coupled with the looming threat of liquidation, paints a bleak picture. The potential fire-sale prices of assets in a liquidation scenario could mean creditors receive only a fraction of what they are owed.
As the crypto world watches WazirX’s next moves, the exchange’s future hangs in the balance. Will it find a way to navigate the legal and financial hurdles it faces? Or will it succumb to the pressures that have brought down many before it? The coming months will be pivotal, not just for WazirX, but for the broader Indian crypto market.
Source
This article is based on: WazirX’s Restructuring Plan Declined by Singapore Court, Hacked Indian Exchange Says
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
