WazirX, the Indian crypto exchange, has received overwhelming support from its users for a revised restructuring plan, following a previous rejection by the Singapore High Court. The company announced this week that approximately 95.7% of participating scheme creditors voted in favor of the amended scheme, surpassing the support garnered in the initial voting round. This revote aims to revive the exchange and enable asset recoveries for its users, who have been facing difficulties since a major security breach last year.
The restructuring plan was initiated after WazirX reported a hack in July 2024, where it lost user funds amounting to around $230 million. The Singapore High Court initially declined the restructuring plan due to concerns regarding transparency from WazirX's parent company, Zettai Pte Ltd. The court's decision was influenced by worries about Zensui, a Panama-based entity, and its compliance with Singapore's Financial Services and Markets Act (FSMA).
The amended scheme addresses these concerns by shifting the responsibility of distributing recoveries to Zanmai India, a reporting entity under the Financial Intelligence Unit of India. This structural change aims to ensure that a locally regulated operator oversees all distributions to creditors and users, a move that appears to have resonated positively with the Singaporean Court. The court has now given the green light for a revote on the restructuring plan, reversing its previous ruling.
According to WazirX, 149,559 scheme creditors holding $206,892,988.7 in approved claims participated in the revote. Of these, 143,190 creditors, representing $195,751,998.5 in approved claims, voted in favor of the amended scheme. This level of support has significantly exceeded the statutory voting threshold requirement under Section 210(3AB) of the Singapore Companies Act 1967. The voting process was conducted on the Kroll Issuer Services platform between July 30, 2025, and August 6, 2025. Independent assessors from Alvarez & Marsal (SE Asia) Pte Ltd verified the votes.
WazirX founder Nischal Shetty expressed gratitude for the unwavering trust and support received throughout this challenging year. He stated that should the Singapore Court sanction the scheme, the company is committed to restarting operations within 10 business days of the scheme taking effect.
However, despite the overwhelming support in the revote, some skepticism remains within the Indian crypto community. Accusations of pressure tactics and misleading practices have surfaced, with some users arguing that the plan shortchanges victims by offering payouts based on token prices from July 2024, when the market was significantly down. It's worth noting that the original plan, which also claimed over 96% approval, was rejected by the Singapore court for presenting misleading information.
The next step involves Zettai submitting a request to the Singapore Court to have the creditor-approved amended scheme sanctioned. The court will review the voting result, creditor protection measures, and proposed recovery mechanisms to ensure fairness and legality. If approved, the WazirX platform will reopen, and distributions will begin promptly.
The approval of the restructuring plan offers a glimmer of hope for WazirX users who have had their funds locked since the hack. The exchange aims to resume operations swiftly and facilitate the recovery process for its creditors.
