On July 16, 2025, the Singapore High Court reversed its earlier ruling rejecting WazirX’s restructuring scheme. The court has now granted Zettai—the Singapore-entity of WazirX—permission to fast-track a revote on the revised Scheme. If approved by creditors, WazirX could resume operations and begin reimbursing users within weeks.
This marks a major development for thousands of users affected by the July 2024 $234 million hack, many of whom have been locked out of their funds for over a year. If you want a complete timeline, you can refer to this. For them, the court’s green light is more than a legal win—it’s a lifeline.
What Changed Since the June 4 Ruling?
On June 4, the Singapore High Court had rejected Zettai’s original restructuring scheme. The main concern centered around potential violations of Singapore’s Financial Services and Markets Act (FSMA). At the heart of the issue was Zensui, a Panama-based entity that was slated to handle operations under the initial plan.
Singapore’s court questioned whether involving an offshore firm in the distribution of digital tokens could amount to conducting unlicensed digital token services within Singapore. The uncertainty around FSMA compliance was enough to sink the plan, even though it had received overwhelming creditor support—over 93% by headcount and 94.6% by value.
But Zettai didn’t walk away. Instead, it listened, revised the scheme, and submitted a new affidavit that directly addressed the court’s and regulators’ concerns.
Zanmai India Steps In
One of the most critical amendments in the new scheme is the transfer of all core operations—including trading, withdrawals, and user support—to Zanmai Labs, an India-incorporated company. This structural shift was not cosmetic. It was designed specifically to ensure that no part of the restructured platform would be in breach of FSMA rules. The Singapore High Court found these revisions satisfactory.
In a July 4 affidavit reviewed by TheStreet, Zettai co-founder Nischal Shetty confirmed the new arrangement:
“The crypto-crypto operations will be transferred to Zanmai India... to facilitate the full resumption of operations of the Platform.”
The localization of operational control was instrumental in satisfying both the Monetary Authority of Singapore (MAS) and the High Court.
MAS Clarification Tips the Scales
Another decisive factor was a key clarification from Singapore’s financial regulator, MAS. In response to the revised plan, MAS stated that Zettai would not be in breach of FSMA, as long as any token distributions occur outside of Singapore.
This guidance removed the final regulatory hurdle.
With MAS’s position clarified, the judge overseeing the case accepted the restructured plan and permitted a fast-tracked revote. This is expected to take place within weeks.
The judge also noted that Zettai’s revised proposal had incorporated all the necessary amendments based on the court’s earlier feedback, signaling confidence in the plan's legality and enforceability.
What Happens Now?
Zettai has been instructed to conduct a revote among creditors on an expedited basis. If the plan passes with the required majorities—as it did the first time—WazirX will:
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Begin the distribution of user assets without further delay
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Hand over platform operations to Zanmai Labs
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Resume full operations
The anticipated timeline is aggressive. If all goes according to plan, users could regain access to their funds within weeks—a striking contrast to the limbo they’ve endured for over a year.
What the Revised Plan Offers Users
Zettai’s plan isn’t just about reopening WazirX; it’s about making users whole. The proposed scheme offers:
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Reimbursement of 85% of NLPA affected by the 2024 hack
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The possibility of profit-sharing from future platform operations
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A fully operational crypto platform, regulated and managed within India
“Zettai had always contemplated the possibility of the Platform resuming full operations... the Scheme had provided for a sharing of any Platform Profits with Scheme Creditors,” Shetty noted in his latest affidavit.
This means users won’t just get back most of what they lost—they may also benefit from WazirX’s future success.
Lessons for the Crypto Industry
The WazirX case may go down as a landmark in crypto restructuring. It demonstrates how regulators and courts are beginning to draw clearer lines around offshore entities, digital token service rules, and local compliance requirements.
The fact that MAS was willing to greenlight a path forward—so long as distributions happened offshore—shows a regulatory system that is strict but not inflexible. It also sets a precedent: restructuring plans involving cross-border crypto services must localize operations or risk falling afoul of FSMA.
Zettai’s persistence and legal strategy offer a potential blueprint for other distressed crypto platforms looking to recover from hacks or financial collapse.
A Glimmer of Justice for Users
The 2024 WazirX hack left over 4M users without access to their crypto. Many had written off their losses, assuming they would never see their funds again.
But today’s development suggests otherwise. If the fast-tracked vote proceeds smoothly, WazirX could not only restore access to user assets, but do so in a way that complies with local and international financial laws and regulations.
For the users, it’s not just about recovering funds—it’s about the vindication of their patience and the affirmation that, even in crypto, justice is possible.
After a year marked by loss, legal delays, and uncertainty, WazirX’s recovery effort has reached a pivotal milestone. The Singapore High Court’s decision to approve a revised restructuring scheme—and allow a fast-tracked revote—could result in the platform reopening and user distributions beginning within weeks.
With MAS’s regulatory concerns addressed and Zanmai Labs now taking charge of operations, Zettai’s plan appears both compliant and executable. All that remains is for creditors to reaffirm their support in the upcoming vote.
If they do, WazirX will rise from the ashes—not just as a functioning crypto exchange, but as a rare example of user recovery done right.
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