Singapore High Court Blocks WazirX’s Restructuring Plan After $230M Hack

The exchange announced the decision on June 4, acknowledging the setback while emphasizing its commitment to legal compliance and recovery efforts.

“While this outcome was not what we anticipated, we respect the Court’s decision and remain fully committed to complying with all legal and regulatory processes,” WazirX stated.

Restructuring Plan Rejected Despite Creditor Backing

WazirX’s proposal included distributing recovered assets and resuming trading within ten business days of court approval. Notably, over 93% of creditors had voted in favor of the plan.

However, the court ultimately declined to approve the proposal, stalling immediate recovery efforts and forcing the exchange to reevaluate its options.

Legal Next Steps and Platform Status

WazirX said it will explore alternative legal avenues, including a potential appeal. The exchange also clarified that the ruling does not impact its Net Liquid Platform Assets (NLPA), which have been stabilized since the July 2024 incident.

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“WazirX has faced challenges before, and each time, we’ve come back stronger,” the exchange said. “More updates will follow in due course.”

What Comes Next

The ruling is a significant obstacle in WazirX’s attempt to rebuild trust and operational continuity. However, its commitment to creditor repayment, platform stability, and legal recourse suggests the exchange is not backing down from its long-term recovery plans.

Let me know if you’d like a timeline of events since the hack or a breakdown of the original restructuring proposal.

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