đš Major Update: WazirX Restructuring Plan Rejected by Singapore Court
The Singapore High Court has rejected the restructuring plan proposed by WazirX after the platform was hacked in July 2024, losing over $230M in user funds.
WazirX had filed for restructuring in Singapore, aiming to:
â«ïžRebalance user token holdings
â«ïžStart phased distributions
â«ïžRecover up to 85% of user funds over time
But the Court declined the plan, citing lack of transparency and key disclosures missing from WazirXâs side.
â ïž What were the concerns?
WazirX relocated to Panama and rebranded as "Zensui"âbut didnât inform creditors.
The Court found this move suspicious and questioned the restructuringâs fairness.
Ongoing disputes with Binance also raised doubts around ownership and operations.
đ Are user funds at risk?
đĄ WazirX confirmed:
> âNLPA assets remain safeâ â these are not impacted by the court's decision.
đ Whatâs next?
WazirX says it's exploring legal options and considering an appeal.
They remain focused on beginning user fund distributions ASAP.
Users may also pursue legal action in India, now that the moratorium is lifted.
The court shut down the plan. WazirX is regrouping. Funds (NLPA) are safe. Legal fights and appeals might follow. Distributions are still the goal.