Singapore Court Blocks WazirX Restructuring Plan After $230 Million Crypto Hack

Highlights:

• Singapore has rejected a plan by WazirX meant to restructure after the hack.
• WazirX has shifted its base to Panama before the June deadline while keeping services active for Indian users.
• WazirX token crashes after court ruling as users wait for fund access and face growing uncertainty.

The Singapore High Court has rejected the restructuring plan put forward by WazirX, an Indian cryptocurrency exchange. As a result of this decision, the process of returning money to affected users from the July 2024 hack has been slowed down. Distribution of funds on WazirX was set to take place no more than ten business days after the approval process ended. However, the court’s ruling has now halted that timeline and left over 4.4 million users waiting.

Singapore court rejects WazirX’s restructuring plan

The Singapore High Court has rejected the proposed restructuring plan of WazirX, a Singapore-based crypto exchange serving Indian users, which sought to recover from a $230 million hack by North Korea’s Lazarus Group in July…

— CoinNess Global (@CoinnessGL) June 5, 2025

WazirX announced that it is reviewing its legal options and may appeal the decision of the court. Creditors strongly supported the restructuring plan, since 93% voted for it and covered 94.6% of all the claims. However, the court’s decision has stopped the next moves from taking place.

Among its plans was to create a decentralized exchange and produce recovery tokens. WazirX pledged that it would try to return up to 80% of funds to its users, depending on future recovery and platform performance. The team also suggested buying back some tokens to help with the liquidity on the platform.

The company filed for protection in Singapore following the 2024 attack. According to the report, the attack was carried out by the Lazarus Group from North Korea. The business was hoping the restructuring would let it keep running and protect users’ money. As a result of the court’s decision, this plan has been stopped, and the platform’s future is now unclear.

WazirX Shifts Operations to Panama After Legal Setback on Restructuring Plan

WazirX has decided to relocate its operations to Panama after the court ruling. Zettai, the parent company, is taking the lead and will soon operate under a new name, Zensui Corporation. This shift comes ahead of a June 30 deadline in Singapore. After that date, unlicensed crypto firms cannot serve foreign markets from Singapore.

Breaking🚨: WazirX moves company to Panama!

New company name: Zensui

Why? 😅

⚡️Singapore has banned non-licensed Singapore companies from offering Crypto servcies outside Singapore.

⚡️ WazirX does not want to take license from Singapore

New Drama 🙂 pic.twitter.com/OVDcqUQj3D

— CA Sonu Jain (Crypto Tax Expert) (@TheWeb3CA) June 4, 2025

Zensui will take over the services that WazirX provided. In particular, it will take care of issuing recovery tokens and distributing the compensation. Legal documents shared with users confirmed this change. The move to Zensui will be done in three business days after the execution is complete.

The firm has indicated that the move will not impact the operation of its platforms. WazirX does not aim to get approval for any new licenses in Singapore or India. The platform will nevertheless continue to provide services to its users in India. A number of industry leaders have spoken out against the company’s decision to move operations to Panama. They believe that it decreases transparency and leads to more questions from users. A lot of people are still unsure about when they will receive updates on their funds.

🚨#WazirX didn’t reform, it ran.🚨

Shifting base from Singapore to Panama, rebranding as “Zensui,” just to dodge real regulations.

This isn’t a fresh start, it’s a cover-up.

A company under fire doesn’t get to just rename itself and walk away.

Crypto doesn’t need cowards… https://t.co/dD6iFAzPBG

— RK Gupta (EarnWithRK) (@earnwithrk) June 4, 2025

Token Crash and Moratorium Deadline Increase Pressure

WRX, the utility token of the exchange, has dropped by over 37.52% in one day since the ruling was made public. In addition, the market value of the coin has nosedived to $7.62 million. This decline has added more pressure on the exchange and its users. Many users had hoped for partial withdrawals or updates in early June. Instead, they now face more uncertainty.

No new timeline for fund distribution has been shared. The current moratorium that protects WazirX from legal action will end on June 6. If no solution is presented, the exchange may face liquidation under Singapore’s Companies Act. As of now, users cannot access their assets and remain unsure about what comes next.