WazirX Wins Court Nod to Launch Debt Recovery Scheme Following 2024 Hack

Highlights:

• WazirX has won the Singapore court nod to restart repayments to affected creditors.
• The revised debt restructuring plan received support from the majority of the creditors.
• The exchange is planning to return assets in phases as it seeks to resume full operations.

The Singapore High Court has approved the revised restructuring of the debt plan by WazirX. The ruling will enable the firm to start paying off users who the hacking incident. The approval brings relief after months of uncertainty that left thousands of users waiting for their money.

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Singapore High Court has approved WazirX's debt restructuring scheme, a key step toward returning assets after last year's hack. Over 95% of creditors supported the plan, with token distributions to start within 10 business days. Users may recover about 85% of balances.… pic.twitter.com/mAJ5cnIhct

— Vincent Bu Lu (@VincentBuLu1) October 13, 2025

The court supported the plan through a Scheme of Arrangement, allowing WazirX to avoid liquidation and preserve user value. More than 95% of creditors endorsed the proposal, representing around 206.9 million claims in 149,000 accounts. The plan will outline how WazirX will fairly and efficiently redistribute assets under Singapore’s 2018 Insolvency, Restructuring and Dissolution Act.

According to the company, it will begin the initial token distributions within ten business days after the plan takes effect. Analysts estimated that users could recover over 85% of their account balances, depending on the hack’s valuation date. This structured approach allows WazirX to resume trading and withdrawals in phases. The court’s earlier moratorium ensures equal treatment for both Indian and international users under Singapore law.

WazirX Wins Court Nod After Revising Its Debt Restructuring Framework

The court decision comes after a one-year process of amendments, consultations, and negotiations with creditors. In March, approximately 93% of creditors approved a previous proposal. However, the Singapore High Court rejected that version in June due to procedural deficiencies and regulatory issues surrounding token distributions.

WazirX subsequently resolved such concerns by processing repayments via its Indian subsidiary, Zanmai Labs, registered by the Financial Intelligence Unit of India. This change facilitated openness and adherence to local law. The revised proposal was almost unanimously adopted during a second vote between July 30 and August 6, passing with nearly 95% of the vote. The vote, which was managed by Kroll Issuer Services, was limited to users who had positive balances on July 18, 2024.

Indian exchange WazirX’s amended restructuring won 95.7% creditor support. With Singapore court sanction pending and Zanmai Labs set to handle withdrawals, operations — including Bitcoin (BTC) withdrawals — could restart within 10 business days.

— Ox HaK (@oxhak) August 20, 2025

The restructuring process also institutionalized distinct roles between the parent company of the exchange, Zettai Pte Ltd, and Zanmai Labs. Cryptocurrency assets and liabilities were left in the possession of Zettai, and fiat operations in India were left to Zanmai. This framework brought the operations in line with the legal system in Singapore, and it ensured that the years of stalemate that would have been experienced with liquidation were avoided. Analysts point out that a liquidation process would have delayed user recoveries to 2030 and beyond.

Recovery Phase Gains Momentum as WazirX Prepares Market Reentry

WazirX is now focusing on execution. The exchange will begin phased repayments, then gradually reopen trading and withdrawal services. The purpose of these steps is to reintroduce liquidity and stabilize operations following months of disruption.

CEO Nischal Shetty said the company remains committed to transparency and the timely fulfillment of all user obligations. He called the consent of the court a shared victory among users, creditors, and the crypto community in general. Provided it is implemented as intended, WazirX may become one of the leading exchanges in India in a few months.

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