Crypto Exchange
WazirX Hit with Legal Setback as Singapore Court Rejects $230M Crypto Recovery Plan
Adding further intrigue to the situation are unconfirmed reports that WazirX is preparing to relocate its base of operations to Panama through a new subsidiary called Zensui Corporation. Though several crypto news outlets have covered the rumored move, WazirX has yet to issue an official statement.
India’s embattled cryptocurrency exchange WazirX has suffered yet another blow as the Singapore High Court rejected its proposed restructuring plan, leaving over $230 million in user funds effectively frozen. The ruling, delivered on June 4, 2025, has thrown a wrench into the company’s attempts to restore user trust and begin long-awaited crypto token distributions.
The restructuring plan—backed by 93.1% of voting creditors representing 94.6% of total value—was designed to facilitate the distribution of locked tokens to users who have been unable to access their assets since a multi-signature wallet hack in 2024. Despite the overwhelming support from creditors, the Singapore High Court declined to approve the plan.
WazirX responded in a statement on X (formerly Twitter).
The Honourable Singapore High Court issued an order declining to approve our proposed restructuring plan. While this outcome was not what we anticipated, we respect the Court’s decision and remain fully committed to complying with all legal and regulatory processes.
Our primary… pic.twitter.com/jrXFFwnMBA
— WazirX: India Ka Bitcoin Exchange (@WazirXIndia) June 4, 2025
WazirX added that it is now exploring legal alternatives and intends to appeal the decision, emphasizing that its Net Liquid Platform Assets (NLPA) remain unaffected and secure.
The setback is a major disruption for users who have been waiting for over a year to access their frozen crypto holdings. WazirX had previously promised that once its restructuring “Scheme” was approved, token distributions would begin within 10 business days. That timeline is now in jeopardy.
“Our primary focus remains to begin distributions as soon as possible,” said WazirX. “We are currently evaluating all available legal options in consultation with our legal and advisory teams.”
The failed restructuring plan raises broader concerns about regulatory uncertainty and the operational resilience of crypto platforms that operate across jurisdictions. The decision also fuels skepticism among users who are still recovering from the platform’s security breach, which resulted in one of India’s most significant crypto losses to date.
Adding further intrigue to the situation are unconfirmed reports that WazirX is preparing to relocate its base of operations to Panama through a new subsidiary called Zensui Corporation. Though several crypto news outlets have covered the rumored move, WazirX has yet to issue an official statement.
With the restructuring plan halted and users left in limbo, WazirX now faces mounting pressure to act swiftly. Legal challenges, reputational damage, and the loss of user trust could compound into an existential crisis for the exchange.
