WazirX Wins Court Battle for Restructuring Time After Hack – What’s Next for the Crypto Exchange?
Another day, another crypto exchange scrambling to pick up the pieces. WazirX just bought itself breathing room with a court-approved extension to restructure post-hack—but can it regain trust?
The clock is ticking. While the ruling gives WazirX a lifeline, skeptics are already asking: Is this a comeback story or just delaying the inevitable? After all, in crypto, 'restructuring' often means 'hoping users forget.'
One thing’s certain: The exchange’s next moves will be under a microscope. Will it rebuild stronger or join the graveyard of hacked platforms? Only time—and maybe another court ruling—will tell.
Breathing room
The extended moratorium provides WazirX with breathing room as it prepares additional legal arguments to convince the court of its restructuring plan's viability.
The original moratorium, granted on June 6, had protected the company from creditor actions while it sought court approval for its recovery strategy.
Following the court's initial rejection, WazirX revealed in redacted legal documents sent to users that Zettai plans to relocate operations to Panama through a newly incorporated subsidiary called Zensui Corporation, established on March 10.
The MOVE came as Singapore's central bank set a June 30 deadline for local crypto service providers to cease offering digital token services to overseas markets, adding pressure to WazirX's restructuring efforts.
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: India Ka bitcoin exchange (@WazirXIndia) June 4, 2025
WazirX's parent company, Zettai, has finalized agreements to transfer the platform's crypto-related services to Zensui, with the transition expected to be completed within two to three business days once executed.
The Panama-based entity will also handle the issuance of recovery tokens tied to the exchange's post-hack compensation scheme.
The recovery tokens function as on-chain IOUs—essentially digital "I owe you" certificates—representing users' outstanding balances, designed to track claims not covered by initial distributions.
In crypto exchanges, IOUs serve as formal acknowledgments of debt when platforms cannot immediately return user funds.
More delays for WazirX users
More than 93% of voting creditors approved the restructuring plan in April, with WazirX promising the tokens could yield 75% to 80% of users' account balances at the time of the hack.
“WazirX is in a holding pattern, caught in a prolonged legal process in Singapore following the massive hack,” Dhrupad Das, Web3 lawyer and founding partner at Panda Law, told Decrypt.
The court extension means “more delays” for users, with much of the recovery hinging on “speculative” tokens and WazirX’s “planned decentralized exchange,” while the Binance dispute and Panama move only deepen the “uncertainty,” Das said.
