In a significant milestone for India’s leading crypto exchange, WazirX, the Singapore Court has officially sanctioned the company’s creditor-approved restructuring scheme, marking a crucial step toward restarting operations and restoring user confidence following last year’s unprecedented cyberattack.

The approval follows months of collaborative engagement with creditors, regulatory bodies, and the Singapore judiciary, underscoring WazirX’s commitment to transparency, accountability, and rebuilding trust in the digital asset ecosystem.

Court Sanction Marks a Turning Point

The sanction, granted to Zettai Pte. Ltd., WazirX’s Singapore entity, finalizes a comprehensive restructuring plan that was overwhelmingly supported by creditors — with over 95% in favor by both count and value, twice.

The approved scheme will allow WazirX to implement its recovery framework, which includes giving ~85% tokens to each creditor, the distribution of recovery tokens, profit-linked reimbursements, and a phased restoration of trading and withdrawal services. The exchange confirmed that operations are expected to resume within 10 business days of the scheme becoming legally effective.

“The sanction represents a key milestone in WazirX’s journey since it marks one of the fastest restructurings in the global crypto industry, despite suffering one of the biggest cyberattacks in the history of this space. We remain fully focused on our mission towards acting in the best interests of our creditors. As soon as the scheme is legally effective based on today’s verdict, we will start platform operations within 10 business days. To everyone who stood by us with patience and belief — thank you,” said Nischal Shetty, Founder of WazirX.

Background: Resilience After the 2024 Security Incident

In July 2024, WazirX faced a major cyberattack in which hackers exploited multi-signature wallet vulnerabilities, resulting in a loss of approximately $235 million. The company swiftly suspended trading and withdrawals to protect users and began an extensive forensic investigation.

To ensure a fair and transparent recovery process, WazirX filed for court-supervised restructuring in Singapore, appointing Kroll as the scheme manager to oversee the process and ensure creditor protection.

After multiple rounds of review and revision, the High Court’s sanction validates the company’s proactive approach to crisis resolution and its adherence to international compliance standards.

Revised Scheme Enhances Transparency and Compliance

The sanctioned version of the restructuring scheme incorporates several key improvements based on feedback from both the Court and stakeholders. These include:

• Strengthened regulatory compliance through the involvement of Zanmai Labs Pvt. Ltd., the India-based entity registered with the Financial Intelligence Unit (FIU-IND).
• Transparent distribution mechanisms, allowing verified users to receive recovery tokens and fund allocations under court-monitored oversight.
• A robust governance structure ensuring independent review of financial disbursements and ongoing reporting obligations to the Singapore Court.

These modifications addressed the Court’s earlier concerns related to jurisdictional clarity and compliance with the Financial Services and Markets Act (FSMA), paving the way for final approval.

The Road Ahead: Restoring Trust and Rebuilding Operations

With the scheme now sanctioned, WazirX will begin the process of operational reinstatement. The company has confirmed that key filings with the Accounting and Corporate Regulatory Authority (ACRA) are underway, after which the restructuring plan will become legally effective.

Once effective, WazirX aims to reactivate trading services and begin creditor distributions within 10 business days, signaling the company’s readiness to return to normal operations under enhanced security and compliance frameworks.

“Thank you to everyone who supported this difficult phase of WazirX. The Singapore High Court has approved the scheme.

Its your support and love that has made this possible ❤️

Now we set out on the next phase to work hard and create value for everyone. We’re here because of YOU 💪🚀🚀🚀,” tweeted Nischal Shetty.

A Landmark for the Crypto Industry

The Singapore High Court’s sanction of WazirX’s restructuring plan represents one of the first successful court-approved recovery frameworks in Asia’s digital asset industry. The case sets a precedent for how crypto companies can leverage structured legal mechanisms to recover from large-scale security incidents while maintaining user protection and operational integrity.

Industry observers view the ruling as a positive signal for regulatory collaboration and investor confidence across the broader crypto ecosystem. It demonstrates that transparent governance, judicial oversight, and stakeholder alignment can enable a responsible path to recovery even in the aftermath of significant challenges.