Embattled Indian-focused crypto exchange WazirX has been granted a critical extension by the Singapore High Court, allowing the platform to submit additional legal arguments for its restructuring plan. This extension of the moratorium, originally approved on June 6, shields WazirX from creditor actions and buys the company more time to push forward its Scheme of Arrangement—a plan to compensate users affected by a $234.9 million (₹1,961 crore) crypto hack last July.
The court’s initial rejection earlier this month cast serious doubt over WazirX’s future. However, the new decision revives hopes for over 6.6 million users who have been locked out of their accounts for nearly a year. The exchange, run by its Singapore-based operator Zettai, emphasized in a statement that it remains “fully committed” to the recovery plan and is optimistic about presenting its case anew.
$234.9M Hack Fallout: Recovery Tokens and Relocation to Panama
WazirX’s restructuring plan hinges on the issuance of “recovery tokens”—digital IOUs designed to represent users’ frozen balances. These tokens, according to legal documents, are expected to compensate users for up to 75% to 80% of their account balances as of the hack date. However, these tokens remain speculative in nature and subject to market volatility.
Following increased regulatory pressure in Singapore—particularly a June 30 deadline from the Monetary Authority of Singapore (MAS) requiring crypto firms to stop servicing overseas clients—WazirX has also begun transitioning operations to Panama under a new entity, Zensui Corporation. The new subsidiary, incorporated in March 2025, will oversee all crypto-related services and the rollout of the recovery token program.
Zettai has finalized its agreements to shift operations, and the transition to Zensui is expected to be completed within days of execution. This corporate reshuffling aims to navigate shifting regulatory landscapes, but adds further uncertainty for users and creditors alike.
Legal Delays Add to User Frustration and Market Uncertainty
Despite over 93% of creditors approving the restructuring proposal in April, the court’s earlier rejection and continued legal scrutiny have led to mounting frustration. Many users now face extended waiting periods for partial fund recovery, with compensation tied to the yet-to-be-launched recovery tokens and a proposed decentralized exchange.
Legal experts, including Web3 lawyer Dhrupad Das, warn that these developments may further delay meaningful restitution. “WazirX is in a holding pattern,” Das noted, “with much of the recovery hinging on speculative digital assets.” He added that the ongoing dispute with Binance and the Panama relocation compound the overall uncertainty surrounding the exchange’s future.
For now, while WazirX has bought time with the court’s latest decision, the long road to recovery for millions of affected users remains riddled with legal, financial, and operational hurdles.