The embattled crypto exchange WazirX has hit another bump in the road, with a recent decision from Singapore’s High Court dealing a blow to its ongoing recovery efforts.
According to the latest announcement from Indian crypto exchange WazirX, the Singapore High Court has issued an order declining its proposed restructuring plan. The court’s decision marks a major setback for the exchange, which has struggled to regain its footing since suffering a devastating $230 million hack in July 2024.
“The Honourable Singapore High Court issued an order declining to approve our proposed restructuring plan,” wrote the exchange, expressing its disappointment with the verdict.
Despite the ruling, WazirX assured creditors that it remains committed to facilitating distributions and is exploring additional legal options, including an appeal to the Court. The exchange added that assets remain safe, assuring its lengthy list of creditors that a resolution is in the works.
However, the assurances did little to quell creditors’ outrage as many flooded social media with accusations.
Community claps back with fresh WazirX ‘scam’ accusations
Several creditors have expressed frustration with WazirX’s latest update, pointing to the months-long delay since the originally promised distribution timeline of February 2025. Many argue that the exchange is using legal issues as an excuse to avoid paying back users. “This isn’t delay. It’s a scam wrapped in court drama,” said one frustrated Netti Mittal, echoing broader community sentiment.
Others added that the restructuring bid was likely denied because the judge suspected questionable behavior from WazirX and its executives, including a lack of transparency and possible deceit.
Adding fuel to the fire is the exchange’s latest decision to move from Singapore to Panama under a new name, ‘Zensui,’ highlighted in recently shared legal documents. “Zettai has taken steps to incorporate a subsidiary, Zensui Corporation […] in the Republic of Panama, and has been preparing for the transfer of the operations of the Platform’s cryptocurrency-related services to Zensui,“ the documents read.
Several users have interpreted the move as a deliberate escape strategy, accusing WazirX of using it as a fraudulent tactic to avoid repaying creditors the funds allegedly ‘stolen.’ Many are now calling on Indian authorities to take legal action, including demands for the arrest of the exchange’s CEO Nischal Shetty.
