In a significant blow to the Indian cryptocurrency exchange WazirX, the Singapore High Court has rejected its proposed restructuring plan. This decision comes in the aftermath of a massive $230 million hack in July 2024, attributed to the notorious North Korean Lazarus Group, which severely impacted the platform's operations and user trust.
WazirX, registered in Singapore under its parent company Zettai Pte Ltd, had put forward a comprehensive restructuring plan to address the financial fallout from the cyberattack. The plan was intended to stabilize the exchange, manage debts, and facilitate recovery for creditors and affected users. However, the court's rejection has thrown these efforts into uncertainty, casting a shadow over the future of the platform.
Reports indicate that the court's decision was influenced by concerns such as the company’s lack of registration in India and undisclosed details regarding a Panama subsidiary. This has raised questions about transparency and the feasibility of asset distribution to creditors, further complicating the recovery process for users hoping to reclaim lost funds.
In response to the ruling, WazirX has announced its intention to appeal the decision, signaling a continued fight for recovery. Additionally, the exchange is exploring a potential relocation of operations to Panama and a rebranding as Zensui, in an effort to start afresh and rebuild trust with its user base.
The rejection of the restructuring plan has sent ripples through the cryptocurrency community, particularly among Indian users who form a significant portion of WazirX's clientele. Many are now left in limbo, awaiting clarity on how or when they might recover their assets following the devastating hack.
As legal challenges mount and operational uncertainties grow, the future of WazirX remains precarious. The outcome of the appeal and the potential shift to Panama will be critical in determining whether the exchange can overcome this setback and restore confidence in its platform.
Maria Lourdes
