Singapore Court Slams Brakes on WazirX’s $230M Repayment Scheme—Now What?

Another day, another crypto plot twist—this time with a side of judicial intervention. WazirX’s plan to return $230 million to users just got a hard ‘no’ from a Singapore court. Cue the panic tweets.

No bailout, no shortcuts. The ruling throws cold water on WazirX’s attempt to fast-track repayments, leaving users wondering if their funds will ever escape legal limbo. Meanwhile, execs are probably scrambling for Plan B (or hiding behind NDAs).

Here’s the kicker: regulators love a good crypto cautionary tale, and this one’s ripe for their ‘I-told-you-so’ files. Will WazirX appeal? Pivot? Or join the growing graveyard of ‘temporarily insolvent’ exchanges? Stay tuned—the only certainty here is more drama.

Bonus jab: Nothing says ‘financial innovation’ like needing a court order to access your own money.

India’s once-leading crypto exchange, WazirX, is facing fresh trouble after the Singapore High Court declined to approve its restructuring plan, throwing creditor repayments into indefinite uncertainty once again. 

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 Repayment Hopes Dashed

The plan, which aimed to begin creditor payouts by April 2025, had previously received initial court approval in January following a devastating $230 million hack linked to North Korea’s Lazarus Group. WazirX had proposed a path to recovery that included launching a decentralized exchange (DEX), issuing recovery tokens, and buying back tokens to support liquidity. However, with the court’s recent decision, the repayment timeline has collapsed, leaving creditors in limbo.

WazirX Shifts Base to Panama 

Following the Singapore court’s rejection of its restructuring plan, WazirX is now relocating operations to Panama and rebranding under a new entity. Recently, the exchange shared redacted legal documents with users via email, revealing that its parent company, Zettai, is setting up a subsidiary called Zensui Corporation in Panama. The MOVE signals a strategic shift as WazirX attempts to reset its crypto services under a new jurisdiction, possibly to regain operational flexibility and distance itself from ongoing legal and financial challenges.

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•   WazirX Rebrands as Zensui After Moving from Singapore to Panama
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Legal Limbo and Risk of Liquidation

The Singapore court’s refusal now threatens to push WazirX into liquidation under Section 301 of the Companies Act. If that happens, remaining assets may be sold at fire-sale prices, resulting in significantly lower compensation for affected users. Despite the setback, WazirX said in a note to creditors that it remains committed to legal compliance and hopes to begin distributions “as soon as possible.”

From Market Leader to Crisis Mode

Once a dominant force in India’s crypto trading scene, WazirX’s credibility is in question due to poor communication, limited asset recovery, and an almost complete shutdown of user interaction on social media platforms. Moreover, this latest court ruling casts serious doubt over the platform’s future and signals deeper challenges for its path to redemption.

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