WazirX Hack Update: Singapore Court Declined WazirX Restructuring Plan

• WazirX exchange disappointed creditors as its restructuring scheme was not approved by the Singapore High Court
• The Indian exchange is planning to appeal in response to Singapore Court’s rejection

It will be a year in two months since the $235 million WazirX hack took place. And the exchange still doesn’t have a clear solution for its creditors. As the Singapore High Court rejected its proposed restructuring scheme, the WazirX hack saga is back to square one, with creditors wondering if they will ever receive their assets

As per the recent update from the exchange, the Singapore High Court rejected its restructuring plan to pay out creditors. Even though the reasons behind the rejection are unknown, it is a big blow to the creditors who were anticipating receiving their assets. WazirX sent out emails to its customers and updated the information on its X account

Will “Appealing” Against Singapore Court’s Decision Work for WazirX?

The exchange didn’t expect the rejection, but it has to be bound by the Court’s order and compliance processes. It further stated,

“Our primary focus remains to begin distributions as soon as possible. Towards this goal, we are currently evaluating all available legal options in consultation with our legal and advisory teams, and will be appealing against the decision of the Singapore High Court.”

However, it remains to be seen whether appealing will show a path towards paying out creditors of WazirX. Some creditors even wonder whether this is another tactic by the exchange to prolong its asset distribution

Furthermore, the exchange ensured that all the assets of creditors remained safe. Meanwhile, the exchange also mentioned its plans to shift its operations to Panama in a redacted legal document. Its parent company, Zettai, will be rebranded to Zensui Corporation

What’s Next for WazirX and Its Creditors?

With the latest rejection from the Singapore High Court, creditors remain fazed about their assets. It brought a new sense of hopelessness for people who have been waiting for months to get their assets back. Adding fuel to the fire, WazirX social media channels restricted user engagement, making creditors even more frustrated

The last update on the Court hearing was on May 23, and no one from the WazirX team came forward and addressed creditors until now. All they have sent is an email and an update on the WazirX account

WazirX either needs to appeal, as it stated, or come up with a new solution to pay out creditors. If it doesn’t happen or if WazirX’s restructuring plan completely fails, the exchange would have to face liquidation as per Singapore laws. In such a scenario, creditors would receive a much smaller percentage of their assets than what they expect from the restructuring scheme

Meanwhile, concerns over the transparency and credibility of the WazirX authority increase with each passing day across social media. Its inability to address and assure creditors directly is tarnishing the reputation of the exchange

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