Summary:
WazirX has taken its restructure strategy to pay its creditors to the Singapore High Court, which has dismissed it.
The Indian exchange is going to appeal the judgment.
Now, creditors await their settlements, close to a year after the $235 million hack and are frustrated out of their wits.
WazirX will move to Panama and relaunch its parent company.
Trust is a problem that is being aggravated by a lack of person-to-person communication and limited access to social media.
WazirX Restructuring Scheme Fall Out
1+ The WazirX Restructuring Scheme wanted to compensate the victims of its many scuttles of its infamous $235 million hack back in 2024. However, almost one year down the line, no progress has been made. The Singapore High Court turned down the plan with prejudice dealing a major setback to the exchange as well as the creditors.
Nevertheless, still hoping to make it up, the effort of WazirX to reorganize its duties was blocked, and thousands of the affected users are facing a nervous breakdown. No motive of the rejection by the court has been released, which rises speculation.
Reasons for the Rejection
The restructuring plan of WazirX was the first way to circumvent liquidation and pay back in some form or the other. It is this legal avenue that creditors had placed their bet on and are once more left to languish.
“Our primary focus remains to begin distributions as soon as possible. Towards this goal, we are currently evaluating all available legal options… and will be appealing against the decision of the Singapore High Court,” said WazirX in its official communication.
However, with no clarity and explanation publicly given by the court, the future is hazy.
By WazirX: An Appeal Under Process
WazirX was not anticipating the restructuring plan to be disapproved and now the platform is ready to appeal the move. Nevertheless, most of the creditors are skeptical on whether it is another stalling mechanism.
Although the exchange underlines that the assets of users are safe, it has never hosted open forums or live updates. The most recent message was the emails and a post on X (formerly Twitter) posted on May 23, 2025.
Red Flags: Social Media Jaw Clinches and Panama Intervencion
To add insult to injury, the WazirX has limited social media activity, severing important channels of communication with the user community. This has been reported to be dysfunctional as users have claimed to be unable to comment or raise a question as a result of this distrust.
To further confuse the matter, the leaked documents show that WazirX intends to:
- Relocate the operations in Panama
- Rebrand its mother company Zettai to Zensui Corporation
These events beg the question of the long-term plans and the interest of WazirX to Indian stakeholders.
What Creditors have to Lose?
WazirX will have no choice but to proceed to liquidation in Singapore should it be unable to devise and execute a restructuring plan that the court may consider acceptable–or should their request be rejected.
This implies that creditors may still get much less of the value of their initial investment, which was already stuck out since 2024 when $235 million was stolen. There are still no personal guarantees of the team and thus anxiety keeps increasing.
The Future Road
In the case of WazirX, time will run out. The following actions have to involve:
- Convincing effectively or offering a novel plan of restructuring
- Communication with creditors in an open manner
- Regaining the trust by updating people more frequently and hosting community Q&As
Otherwise, liquidation could be the last straw of the chafing downfall of the once popular Indian crypto exchange.