- The Singapore High Court has rejected WazirX’s proposed restructuring plan following a $235 million cyberattack in July 2024
- The court cited transparency concerns, including undisclosed plans to relocate operations to Panama under a new entity, Zensui
- This decision delays creditor repayments and raises the possibility of liquidation under Singaporean law
The Singapore High Court has dismissed a restructuring plan submitted by Indian crypto exchange WazirX, after a $235 million theft in July 2024. The court’s decision was influenced by concerns over transparency, notably WazirX’s undisclosed move to Panama and rebranding as Zensui, which the court looked unfavourably on. The ruling postpones the repayment process for creditors and opens the door to potential liquidation proceedings, a situation that neither creditors nor WazirX’s owners would have wanted.
$235 Million Hack Still Haunts WazirX
In July 2024, WazirX suffered a cyberattack attributed to North Korea’s Lazarus Group, resulting in the loss of approximately $235 million in digital assets. The hackers exploited vulnerabilities in WazirX’s multisignature wallet system, gaining unauthorized access and transferring funds to external addresses. Following the breach, WazirX halted trading activities and sought legal protection under Singapore’s insolvency laws.
In an effort to recover from the financial setback, WazirX’s parent company, Zettai Pte Ltd, proposed a restructuring plan which included issuing recovery tokens, launching a decentralized exchange, and implementing periodic buybacks to support liquidity. A significant majority of creditors—over 93%—approved the plan, which aimed to return up to 80% of funds to users, depending on future recovery and platform performance.
Despite creditor support, the Singapore High Court rejected the restructuring plan on June 5, 2025, citing cited concerns over transparency, particularly WazirX’s undisclosed incorporation of a new entity, Zensui Corporation, in Panama. The restructuring was viewed as an attempt to circumvent Singapore’s regulatory framework, especially with the impending implementation of the Financial Services and Markets Act, which restricts unlicensed crypto firms from serving foreign markets.
Victims Face Uncertain Future
The court’s decision delays the anticipated repayments to creditors, who were expecting distributions to begin as early as April 2025. WazirX has expressed its intention to appeal the ruling and is exploring all available legal options, but if the restructuring ultimately fails, WazirX could face liquidation under Section 301 of the Singapore Companies Act.
Were this to be the outcome, the levels of compensation for creditors would be reduced, perhaps substantially, and so all parties will be hoping that the restructuring can be approved in some form.
