WazirX crypto exchange’s restructuring proposal struck down by Singapore High Court

The latest development means that WazirX will have to explore alternatives [File]
| Photo Credit: REUTERS

Cryptocurrency exchange WazirX, which suffered a more than $230 million loss lost year after a multi-signature wallet was hacked, saw its proposed restructuring plan shot down by the Singapore High Court.

The proposed plan, which WazirX said that 93.1% of voting creditors representing 94.6% in value had voted in favour of, was meant to facilitate token distributions to users who have not been allowed to access their crypto for close to a year now.

“The Honourable Singapore High Court issued an order declining to approve our proposed restructuring plan. 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,” posted WazirX on platform X on June 4.

The latest development means that WazirX will have to explore alternatives as customers grow desperate to access their locked-up crypto.

“Our primary focus remains to begin distributions as soon as possible. Towards this goal, we are currently evaluating all available legal options in consultation with our legal and advisory teams, and will be appealing against the decision of the Singapore High Court. Today’s decision does not impact the NLPA assets, which remain safe,” said the crypto exchange.

NLPA stands for Net Liquid Platform Assets.

WazirX previously promised that after the rebalancing process, first distributions would be “processed within 10 business days of the Scheme should it become effective.”

In addition to this news, several crypto outlets reported that WazirX was shifting its base to Panama and incorporating a subsidiary called the Zensui Corporation. The company has made no official announcement about the news yet.

The Hindu reached out to WazirX for clarification, but the company was not ready with a statement.