On June 25, PANews reported that the High Court of Singapore approved an extension of the legal protection period for WazirX, giving the Indian exchange, which is embroiled in a $234 million hacking incident, a last opportunity for restructuring. The court allowed it to present new arguments supporting the revised restructuring plan and postponed creditor lawsuits until a final ruling. The exchange had previously planned to transfer its core business to a new entity in Panama, Zensui Corporation, and proposed to issue 'recovery tokens' linked to the unpaid balance, promising users that they could ultimately recover 75%-80% of their lost assets. Although it received 93% support from creditors in April, the court did not approve the plan last month due to insufficient transparency.
If the restructuring fails, compulsory liquidation could delay user payouts until 2030. Currently, the platform still has 400,000 user accounts frozen for nearly a year, and the date for the next hearing has not yet been announced. This extension is seen as WazirX's last window to rebuild trust after the collapse of institutions like FTX.