The Embattled Indian Crypto Exchange Wazirx’s restructuring plan has hit a major disadvantage in which Singapore High Court refused to approve Crypto Exchange’s proposed scheme to repay creditors.
The decision effectively delays the payments that were expected to begin as early as April 2025. “The honorable Singapore High Court issued an order that fell to approve our proposed restructuring plan,” Wazirx said in an E email to creditors.
“While this result was not what we expected, we respect the court’s decision and remain fully obliged to comply with all legal and legislative processes. Our primary focus is still on beginning distributions as soon as possible,” it claimed.
The court initially approved Wazirx’s plan in January after the Exchange, which sought protection against liquidation in the wake of a devastating hack of $ 230 million from North Korea’s Lazarus group.
The scheme would have enabled creditors to vote on whether the plan should accept, with payments promised within 10 working days of activation.
This plan also included the launch of a decentralized exchange (DEX), posting the recovery roof and implementation of periodic repurchases to support liquidity.
But with the court’s latest decision, the timeline for repayment of the creditor has again been thrown into uncertainty. If the restructuring eventually fails, Wazirx may face liquidation under section 301 of the Singapore Companies Act, which may result in fire sales prices for remaining assets and lower compensation for creditors, as previously reported.
Wazirx has been subjected to overwhelming criticism for its slow communication and limited success with active recovery and limited users’ ability to interact with its social media accounts.
The exchange once dominated crypto trade in India, but many are now back and wonder if they will ever see their money again.
