WazirX obtains Singapore court approval for restructuring scheme

Embattled Indian crypto exchange WazirX has secured court approval for its long-awaited restructuring plan. 

In an October 13 post on X, WazirX co-founder and CEO Nischal Shetty announced that the Singapore High Court has approved the company’s restructuring scheme. This marks the formal end of the months-long legal standoff and a crucial step in the exchange’s ongoing efforts to recover from its 2024 collapse.

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

The approval marks a reversal of the court’s earlier position. In September, the same court rejected a previous proposal, citing fairness and feasibility issues. That ruling had drawn strong criticism from the exchange’s creditors, many of whom accused executives of delaying repayments and hiding behind legal processes.

What the court’s nod means for WazirX and creditors

The India-based crypto exchange lost about $230 million in a July 2024 cyberattack that the U.S. Department of State linked to North Korea’s Lazarus Group. The breach wiped out nearly half of the company’s assets and left thousands of users locked out of their funds. 

Since then, WazirX has pursued multiple restructuring efforts, with the latest plan receiving strong support from creditors. The Singapore court’s approval now provides the legal framework to move forward with its restructuring plan. 

While the company has not provided specific timelines for implementation, it previously indicated that trading could resume within 10 business days of the scheme taking effect. This suggests that WazirX may soon begin repaying users, restarting operations, and carrying out other recovery measures.

Meanwhile, the exchange continues to face legal pressure in India. The Delhi High Court is reviewing its past ties with Binance, which once claimed, and later denied, ownership of the platform. This dispute adds an extra layer of uncertainty to the broader recovery process, while creditors continue to push for a Special Investigation Team to probe the 2024 hack and ensure accountability.

Still, the Singapore court’s approval marks an important step for the exchange, though its ability to deliver on repayments and rebuild trust remains to be seen.