Court Sanctions Modified Restructuring Plan
Zettai Pte Ltd, the parent company of cryptocurrency platform WazirX, has received approval from the Singapore High Court for its creditor-approved restructuring plan. The plan had previously faced hurdles but was re-approved in August 2025, with 95.7% of creditors in favor, representing 94.6% in value. The court’s sanction now clears the way for WazirX to resume platform operations within 10 business days of the scheme becoming legally effective and to begin token distributions to affected creditors.
Background of the Cyberattack
The restructuring follows one of the largest cyberattacks in the cryptocurrency sector. In July 2024, WazirX suffered a hack that resulted in losses of approximately $234 million, affecting around 4.3 million users. Nearly 45% of the platform’s total held funds were impacted, leaving many users unable to access their assets. WazirX identified North Korea-linked Lazarus Group hackers as responsible for the attack, a finding that underscored the growing sophistication of global cybercriminal operations targeting crypto exchanges.
Founder’s Statement and Company Response
Nischal Shetty, WazirX founder, stated that the court’s decision marks one of the fastest restructurings in the global crypto industry despite the severity of the cyberattack. “We remain fully focused on our mission to act in the best interests of our creditors. Once the scheme becomes legally effective, we will restart platform operations within 10 business days,” he said. WazirX aims to rebuild trust with its users while ensuring the secure redistribution of stolen tokens.
Restructuring Plan and Legal Hurdles
Earlier in 2025, WazirX’s restructuring plan had received approval from the creditor committee, but the High Court initially rejected it. Analysts reported that the rejection was likely due to incomplete disclosure regarding WazirX’s Panama-based entity. In June, the company had incorporated Zensui Corporation in Panama as part of its corporate restructuring. The August re-vote and court sanction reflect modifications to the plan to address prior regulatory concerns and ensure compliance with Singapore’s legal framework.
Implications for Users and Token Recovery
With the court’s approval, WazirX will begin distributing tokens to affected creditors, marking a critical step toward recovering funds lost during the hack. Users who experienced losses will be able to access the platform once operations resume. The move is expected to restore confidence in WazirX, especially among Indian crypto investors who form a significant portion of the platform’s user base.
Strengthening Platform Security
To prevent similar incidents in the future, WazirX has partnered with global digital asset custodian BitGo. This partnership aims to enhance security measures for the funds held on the platform, including advanced custodial protocols and multi-signature wallets. The collaboration reflects the company’s commitment to rebuilding its reputation and providing a secure environment for cryptocurrency trading.
Broader Impact on the Crypto Industry
The WazirX case highlights ongoing risks in the cryptocurrency ecosystem, particularly concerning exchange security and regulatory compliance. Large-scale hacks not only affect individual investors but also influence market sentiment and regulatory scrutiny. WazirX’s restructuring and security measures may serve as a model for other exchanges facing similar challenges, emphasizing the need for robust governance, transparency, and partnerships with security providers.
Looking Ahead
WazirX has stated that it will continue focusing on the Indian crypto market, aiming to strengthen its platform and regain user trust. The successful sanction of the restructuring plan represents a turning point for the platform, allowing it to recover assets, resume operations, and implement improved security measures. As the crypto sector continues to mature, WazirX’s experience may guide other platforms on managing crises and ensuring investor protection.
