The Singapore High Court has extended WazirX’s legal moratorium and granted the Indian cryptocurrency exchange a final chance to present arguments for its proposed restructuring plan.
The decision comes nearly one year after a $234 million hack and months of silence that left users waiting for clarity on fund recovery.
Court Grants Moratorium Extension Amid WazirX Restructuring Struggles
Today, WazirX confirmed via its official X account that the Singapore High Court had accepted its request to present further arguments in support of its restructuring plan.
The same ruling extended the moratorium on legal claims, which originally expired on June 6, 2025, until the court hears and rules on the new arguments.
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
The moratorium shields WazirX from legal action while it restructures. The extension offers the exchange one more opportunity to gain formal court approval for its Scheme of Arrangement, a legal process to reorganize operations and settle obligations.
The court had previously declined to sanction WazirX’s proposal, citing transparency concerns about its parent company, Zettai Pte Ltd. In response, WazirX proposed relocating operations to Panama under a newly formed entity called Zensui Corporation.
Singapore High Court rejects WazirX’s restructuring plan after parent company secretly rebrands and moves to Panama. This paves the way for Indian users to pursue legal action for their lost funds. What’s next for the hacked exchange?#WazirX #Zettaihttps://t.co/HDEmrYzdf6
— Cryptonews.com (@cryptonews) June 4, 2025
Meanwhile, the July 18, 2024, breach was one of the largest crypto exchange hacks of the year, resulting in the loss of $234 million in digital assets. Since then, WazirX users have remained without access to their funds.
The company initially pledged to return 85% of user balances, but progress has been stalled by legal challenges, vague communication, and investor objections.
In its latest post, WazirX stated, “We are currently awaiting directions from the Court on the next steps and will keep you informed as soon as we have more clarity.” The update offered no concrete timelines for hearings, rulings, or user repayments.
As part of its restructuring plan, WazirX plans to issue recovery tokens, on-chain IOUs representing unrecovered funds.
“We will issue RT tokens and use them to distribute any future recovered funds to token holders,” WazirX CEO said.#WazirX #CryptoHack #AssetRecoveryhttps://t.co/5YoXtIppwX
— Cryptonews.com (@cryptonews) February 11, 2025
These tokens are designed to help users claim between 75% and 80% of their hacked balances, depending on market conditions. However, the tokens remain speculative, and user confidence is waning.
Legal and Community Pressures Mount
Although more than 93% of voting creditors approved the restructuring plan in April 2025, legal complications and resistance from Zettai Pte Ltd have delayed implementation. Users and crypto community members have increasingly voiced frustration over the lack of transparency.
Meanwhile, WazirX has not provided updates since the court’s earlier rejection, and many expected a final decision on the restructuring by June 20. With that date passed and no verdict announced, the latest extension feels like another pause rather than progress for affected users.
In February, WazirX had earlier outlined two possible repayment outcomes, depending on whether its proposed restructuring plan is approved or rejected. The exchange warned that repayments could be delayed until 2030 if the court rejects the plan, potentially forcing the company into liquidation.
A successful restructuring would allow for a faster, structured repayment process, possibly including profit-sharing benefits. In contrast, liquidation would involve lengthy legal proceedings, higher costs, and reduced payouts.
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