- Embattled exchange WazirX has received an extension of its legal moratorium from the Singapore High Court
- The exchange has been granted the opportunity to present further arguments in support of its restructuring proposal
- The decision comes three weeks after the court blocked its latest restructuring plan
Singapore’s High Court has extended legal protection for WazirX, giving the embattled crypto exchange more time to submit a revised restructuring proposal. The move comes three weeks after the same court rejected its initial restructuring scheme, citing concerns over transparency and feasibility. With the deadline now pushed back, WazirX has gained a crucial, though temporary, reprieve as it works to win judicial approval and begin repaying users affected by last year’s $234 million hack.
Court Grants Reprieve After Earlier Rejection
WazirX’s initial restructuring plan was in May, but the Singapore’s High Court rejected it earlier this month due to concerns over transparency. The plan proposed transferring operations to a new Panamanian entity named Zensui Corporation and compensating users with recovery tokens representing 75–85% of their balances, a plan that received approval from over 93% of creditors.
Despite its popularity, the court declined to sanction the scheme, leaving WazirX scrambling for alternatives. For obvious reasons, the exchange is now seeking more time to come up with a workable plan to repay customers the $234 million lost in last year’s hack, and it announced yesterday that this had been granted:
📢 Update on Proposed Scheme of Arrangement
The Singapore Court has granted our request to present further arguments in our application for the Court’s sanction of the proposed Scheme of Arrangement. Additionally, the Court has extended the moratorium granted in HC/OA 1284/2024… pic.twitter.com/QdozZHnWVX
— WazirX: India Ka Bitcoin Exchange (@WazirXIndia) June 24, 2025
Restructuring Amid Regulatory and Operational Shifts
The newly extended moratorium shields WazirX from legal action as it attempts to revise its proposal, which may include scrapping its plans to move to Panama. The company’s pivot is meant to streamline operations and sidestep mounting regulatory pressure, with Singapore moving to restrict overseas crypto activities from June 30. However, critics say the move only muddies the waters of an already opaque restructuring process.
WazirX has been in crisis mode since its July 2024 breach, with users unable to withdraw assets ever since the hack. The clock is ticking for WazirX, however; if its revised restructuring plan fails to meet the court’s expectations, the exchange could face forced liquidation or drawn-out creditor lawsuits. For now, the extension offers a narrow window of hope, but no guarantees, for thousands of affected users.
