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The Indian crypto exchange WazirX has cleared a major legal hurdle in its recovery journey after last year’s $234.9 million hack.
The Singapore High Court has approved its debt restructuring plan, paving the way for the exchange to resume operations and begin repaying creditors.
The ruling marks a significant turning point for one of India’s largest digital asset platforms, which has spent over a year navigating investigations, user losses, and mounting regulatory pressure.
But whether this legal victory will be enough to restore investor trust remains to be seen.
Singapore court clears WazirX’s revised debt plan
The Singapore High Court’s approval comes after a prolonged legal process that began following the July 2024 cyberattack, which investigators linked to North Korea’s Lazarus Group.
The hack, one of the biggest in India’s crypto history, drained funds from WazirX’s wallets and froze user assets overnight.
WazirX’s first restructuring proposal was rejected by the court in June 2025 due to procedural flaws and inadequate protections for creditors.
After revising the plan and securing majority backing from stakeholders, the updated version received strong support, with 95.7% of participating creditors voting in favour.
The revised plan outlines a structured repayment model and a timeline for restoring services.
It allows the company to reorganise its liabilities while safeguarding creditor interests under the supervision of the Singapore court.
CEO Nischal Shetty confirmed the approval on X, calling it a crucial milestone in WazirX’s efforts to rebuild.
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
Operations set to restart soon
Following the approval, WazirX announced that the restructuring scheme provides a faster and legally binding alternative to liquidation.
Under the court’s supervision, the exchange is preparing to restart withdrawals and trading activities within 10 business days of the plan’s effective date.
Reports indicate that affected users may recover up to 55% of their lost funds in USDT-equivalent value through phased repayments.
The process will be handled through WazirX’s Singapore-based parent company, Zettai Pte Ltd, which holds custody of the crypto assets.
Meanwhile, its Indian entity, Zanmai Labs, will oversee fiat transactions under Indian compliance norms.
The company said it has already begun testing systems for secure fund transfers, signalling that user access could resume as early as late October if no further legal challenges arise.
Legal challenges and creditor disputes continue
Despite the approval, some creditors are still pursuing independent legal action to recover frozen assets.
One of the most prominent disputes involves CoinSwitch, which has sought to retrieve around $5 million from WazirX.
The Bombay High Court recently directed Zanmai Labs to provide a bank guarantee to protect CoinSwitch’s claim, after the company resisted being included in WazirX’s collective loss-sharing plan.
The hack’s aftermath also revealed deep structural vulnerabilities in the platform’s wallet management and compliance systems.
Investigations found that attackers had exploited multi-signature protocols to gain access to WazirX’s reserves, siphoning off digital assets before the exchange could freeze the wallets.
While WazirX has since upgraded its security systems, the incident has become a cautionary tale for India’s growing crypto industry — particularly regarding asset custody and regulatory oversight in cross-border jurisdictions.
Can WazirX regain user trust?
Although the Singapore High Court’s decision is a critical step forward, the broader challenge for WazirX lies in rebuilding user confidence.
Thousands of investors have been unable to withdraw funds since the 2024 breach, and many remain sceptical about the platform’s long-term viability.
Market observers believe that full recovery will depend on transparency, consistent communication, and timely fund disbursements.
WazirX’s management has said that the next phase will focus on creating value for users, partners, and the wider crypto ecosystem — a promise that will be tested in the coming weeks.
As Diwali approaches, some community members on X have urged the exchange to enable withdrawals before the festival, symbolising a fresh start for India’s embattled crypto traders.
Singapore court has approved WazirX scheme. I still believe Nischal should ensure: -There is no loss to the customers as market has already doubled since then. – No more delays and excuses – No more filling the form Enable withdrawal before Diwali.
Whether WazirX can deliver on that hope will determine if this legal victory translates into genuine recovery.
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