Singapore Court Blocks WazirX’s Restructuring Plan, Deepening Crisis for India’s Top Crypto Exchange

In a blow to the recovery efforts of India’s once-dominant crypto exchange, WazirX announced that a Singapore court has rejected its proposed restructuring plan, casting fresh doubt on the fate of over $230 million in lost user funds.

The decision, confirmed in a message from the company to creditors, comes nearly five months after the firm narrowly avoided liquidation through a court-approved arrangement following a massive security breach allegedly carried out by the North Korean-linked Lazarus Group.

“We respect the Court’s decision and remain committed to fulfilling our obligations. Our priority is to begin distributions as soon as legally permitted,” the company stated, without offering a new timeline for payouts.

Restructuring Delayed Again

The plan had originally called for distributions to begin in April 2025, but the court’s latest refusal leaves creditors in limbo. Under Singapore’s insolvency law, WazirX could now face compulsory liquidation, which may significantly reduce recoverable funds and delay any resolution further.

The rejected scheme also included launching a new decentralized platform, issuing recovery tokens, and implementing a liquidity buyback program—measures now suspended pending legal developments.

Growing Credibility Crisis

Critics say the platform’s silence and lack of detailed disclosures since the hack have eroded public confidence. Once a market leader in India, WazirX now faces allegations of poor governance, limited transparency, and ineffective communication with affected users.

“The ruling doesn’t just hurt WazirX creditors—it sends a message across the region,” said a Singapore-based digital asset lawyer familiar with the case. “Without a robust restructuring framework and consistent disclosures, investor trust vanishes.”

With no revised plan yet announced, users and investors are left waiting—again—with few answers and fewer guarantees.