Latest news with #SingaporeHighCourt
Arabian Post
2 days ago
- Business
- Arabian Post
WazirX Offers Partial Repayment Amid Court‑Mandated Restructuring
WazirX has unveiled a revised restructuring plan under Singapore High Court oversight that proposes to repay approximately 85% of users' pre‑hack balances, while the remaining 15% would be settled over time through a Recovery Token mechanism. A final court decision is expected by 20 June, setting the stage for ensuing repayments. A hack that occurred on 18 July 2024 led to the theft of nearly US $235 million from the exchange's wallets, widely attributed to North Korean Lazarus Group operatives. WazirX parent company Zettai Pte Ltd subsequently secured a moratorium in Singapore and initiated a formal Scheme of Arrangement allowing creditors to vote on recovery proposals. By April, rebalancing of assets was completed, enabling the exchange to present each affected user's USD and INR valuations based on their 18 July 2024 holdings. Around 93% of creditors voted in favour of this plan in April, far exceeding the 75% threshold required by law. ADVERTISEMENT Under the scheme, the initial payment—estimated at 85% of the original holdings—would be disbursed in either the original asset or USDT within ten business days of court approval. The remaining 15% would be issued as RTs, tradable tokens redeemable via quarterly buybacks funded from WazirX's profits or recovered assets. Risks remain, however: if creditors reject the plan, the court may order liquidation under Section 301 of the Singapore Companies Act. That scenario could trigger asset fire‑sales, reducing recovery potential and extending the timeline until 2030. Community reaction is mixed. Many users have expressed doubts over the exchange's transparency and the partial compensation model. Subreddits suggest a collective legal response is forming in Kerala and beyond. One user asserted: 'If anyone still believes that WazirX will return our funds without us taking any action — that hope is gone after yesterday's court decision.' Meanwhile, creditor‑activist voices have argued the restructuring represents a better outcome than liquidation. As one FTX creditor remarked, it is 'far superior to liquidation' for preserving value. CoinSwitch has also launched a parallel initiative named CoinSwitch Cares, offering affected users a potential path to full recovery—up to ₹600 crore—with added incentives for sign‑ups and referrals. However, that scheme depends on WazirX restoring withdrawal functionality. The Singapore High Court's deadline of 20 June will determine whether the court grants final sanction to WazirX's Scheme of Arrangement. Should it proceed, initial disbursements would begin between late June and July. If it's rejected, WazirX would head into liquidation—triggering a protracted, uncertain payout stretching possibly until 2030, with potentially deep losses. WazirX's recovery architecture combines immediate restitution and long‑term tools designed to align creditor outcomes with the firm's future performance. The RT buyback mechanism underscores this approach, offering users potential upside linked to the exchange's profitability and asset recovery. Users must act to verify claims through WazirX's Claim Tracker, accept the rebalanced valuations, and monitor further updates. Approval hinges on the court's formal order and the willingness of creditors to embrace a controlled, phased repayment versus the uncertain prospects of full liquidation.
The Hindu
6 days ago
- Business
- The Hindu
WazirX crypto exchange's restructuring proposal struck down by Singapore High Court
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.
Yahoo
05-06-2025
- Business
- Yahoo
WazirX's Restructuring Plan Declined by Singapore Court, Hacked Indian Exchange Says
Embattled Indian crypto exchange WazirX's restructuring plan has hit a major snag, with the Singapore High Court declining to approve the crypto exchange's proposed scheme to repay creditors. The decision effectively delays any payouts that were expected to begin as early as April 2025. 'The Honourable Singapore High Court issued an order declining to approve our proposed restructuring plan,' WazirX said in an email to creditors. '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. Our primary focus remains to begin distributions as soon as possible,' it claimed. The court initially approved WazirX's plan in January after the exchange sought protection from liquidation in the wake of a devastating $230 million hack by North Korea's Lazarus Group. The scheme would have allowed creditors to vote on whether to accept the plan, with payouts promised within 10 business days of activation. That plan also included launching a decentralized exchange (DEX), issuing recovery tokens, and implementing periodic buybacks to support liquidity. But with the court's latest decision, the timeline for creditor repayment has again been thrown into uncertainty. If the restructuring ultimately fails, WazirX could face liquidation under section 301 of the Singapore Companies Act, which might result in fire-sale prices for remaining assets and lower compensation for creditors, as previously reported. WazirX has faced overwhelming criticism for its slow communication and limited success in asset recovery, and severely limiting the ability for users to interact with its social media accounts. The exchange once dominated crypto trading in India, but many are now left wondering if they will ever see their money again. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Time of India
05-06-2025
- Business
- Time of India
ETtech Explainer: Why WazirX's recovery plan hit a legal roadblock
Live Events Indian cryptocurrency exchange WazirX took a major hit on Wednesday after the Singapore High Court rejected a restructuring plan submitted by its parent company, Zettai Pte Ltd , in November 2024. The proposal came just months after the platform suffered a massive $235 million cybertheft last aware of the matter told ET that the Singapore High Court noted that Zettai Pte Ltd, the operating entity behind WazirX, was not registered in India. Based on this, the court ruled that the restructuring scheme would not be valid in the reviewed the documents Zettai has filed in response to queries from the Singapore court. WazirX confirmed the development and said that it will appeal against the court's decision."Our primary focus remains to begin distribution as soon as possible… 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," WazirX said in a year, ET reported that WazirX was hit by one of the biggest cyberattacks on an Indian crypto exchange. Hackers made off with more than $230 million worth of investor funds, nearly half of the platform's estimated experts indicated possible involvement of the cybercriminal group Lazarus in the allegedly backed by the North Korean government, has previously been linked with some of the largest crypto exchange hacks globally. The group is known for leaving victims unable to recover stolen funds due to a lack of negotiation or US Federal Bureau of Investigation (FBI) reached out to WazirX to study the nature of the cyberattack allegedly involving North Korean cybercriminals and to support the investigation, ET reported on July 29, last year ET reported on May 30 that India is likely to release a discussion paper next month, regarding possible policy frameworks for cryptocurrency assets. The move comes amid growing acceptance of digital currencies, after US president Donald Trump's support, according to people familiar with the matter.
Time of India
05-06-2025
- Business
- Time of India
Singapore HC axes WazirX restructure plan after $235-million cyber heist
In a big blow to crypto exchange WazirX, the Singapore High Court , on Wednesday, dismissed its restructuring plan submitted by Zettai Pte Ltd in November 2024, after the platform suffered a $235 million cyber theft in July last year. Sources privy to Wednesday's hearing told ET, the Singapore court observed that WazirX-operating entity Zettai Pte Ltd was not registered in India and hence the restructuring Scheme shall not be valid. The plan, proposed by Zettai, was placed before the court as part of an insolvency process after WazirX , once the largest Indian cryptocurrency exchange, lost $235 million or nearly half of its crypto reserves in a cyber theft by North Korea-based hackers in July 2024. Later in November, it proposed a rebalancing scheme which aimed to return 52% of total creditor claims through remaining liquid assets ($284 million). Though the proposal had received investors' vote, it required court sanction to take effect. ETtech However, on Wednesday, the Court quashed the plea on grounds that the scheme is not valid in India where Zettai does not operate as a registered reviewed the documents Zettai has filed in response to queries from the Singapore court. WazirX confirmed the development and said that it will appeal against the court's decision. "Our primary focus remains to begin distributions as soon as 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," it said in a statement. Discover the stories of your interest Blockchain 5 Stories Cyber-safety 7 Stories Fintech 9 Stories E-comm 9 Stories ML 8 Stories Edtech 6 Stories WazirX did not respond to ET's detailed query on the matter. Zettai, the Singapore-based company, is not registered with the Financial Intelligence Unit-India (FIU-IND), the financial crime watchdog that mandates reporting obligations for crypto platforms. Instead, WazirX operates in India under a separate entity, Zanmai Labs . This dismissal comes despite, former Supreme Court judge BN Srikrishna , stating his independent opinion in the matter that Indian laws do not licence or regulate crypto platforms operating in India and hence, do not hinder the plan to proceed. Interestingly, the company had registered in Panama three months ago, Zensui, where it was expected to transfer the crypto assets. This comes after the latest mandate that allows only licensed entities to distribute cryptocurrencies in the region through the Financial Services and Markets Act (FSM), which will come into effect on June 30, 2025.
