The crypto world thrives on fast news and faster reactions—but sometimes, real change happens through patience, paperwork, and a lot of legal back-and-forth. That’s exactly what’s unfolding with WazirX, one of India’s largest crypto exchanges.
On July 16, 2025, the Singapore High Court delivered a ruling that could not only bring WazirX back to life but also set a precedent for how crypto companies navigate legal messes after major cyberattacks.
Here are *five key things * you need to know about this major development.
1. WazirX Got a Second Chance from the Court
It’s not every day that a judge reverses their own ruling. But that’s exactly what happened in the WazirX case.
Back in June 2025, the Singapore High Court rejected WazirX’s first restructuring plan. The plan was meant to help the platform recover from the massive $234 million cyberattack in July 2024, which had locked over 4.4 million users out of their crypto assets.
Even though 93.1% of affected users (by headcount) and 94.6% (by asset value) voted in favor of the plan, the court said no. Why? Because of some regulatory concerns.
Fast forward to July 16, things turned around! The court reviewed a revised version of the restructuring plan—and this time, it gave a green light. The judge ruled that Zettai, WazirX’s Singapore entity, had made all the necessary corrections. The earlier rejection was set aside, and the court approved a new vote to go forward.
It’s rare. It’s important. And it changes everything for WazirX users.
2. Why Was the Original Scheme Rejected?
Let’s simplify the legal jargon. The court’s main issues were about compliance, regulation, and transparency.
Here’s what triggered the rejection:
Zensui’s involvement: A Panama-based company, Zensui was named in the plan to handle user assets. That raised regulatory red flags since Zensui wasn’t licensed in India or Singapore.
Possible FSMA violation: The court was concerned that the Scheme might violate Singapore’s Financial Services and Markets Act (FSMA) by offering unlicensed digital token services within the country.
Unclear reference date: The plan used January 17, 2025, as the rebalancing date to calculate user funds. The judge questioned whether this was fair to all users.
In short, the court wasn’t convinced the structure was legal or fair—so despite community support, the plan was struck down.
3. What Did WazirX Do Differently This Time?
To their credit, Zettai didn’t waste time arguing—they acted.
Here’s how they fixed the court’s concerns in the revised plan:
Control shifted to India: All operational responsibilities—like trading, withdrawals, and customer support—will now move to Zanmai Labs, the Indian company behind WazirX. This will remove the offshore risk.
Zensui removed: The Panama entity that caused so much concern is no longer part of the Scheme. That closes the compliance loophole.
Regulatory clarity from MAS: The Monetary Authority of Singapore (MAS) confirmed that if the crypto distribution takes place outside Singapore, it would not violate FSMA. That clears the biggest legal hurdle.
Clear legal language: The amended Scheme will spell everything out—no vague terms or hidden players.
Fast-tracked timeline: Zettai has committed to moving quickly. If the new vote passes, user funds and platform functionality could be restored within weeks.
The court acknowledged these efforts and praised the team for making the necessary changes transparently and promptly.
4. What’s Next?
The Singapore High Court has now allowed a new creditor vote—and it’s expected to happen soon.
If users vote in favor of the revised scheme, here’s what will follow:
User funds will start returning: The plan proposes to return 85% of NLPA upfront. Additional value will be returned over time through profit-sharing, depending on the platform's new initiatives and recovery tokens.
WazirX will resume operations: Trading, deposits, withdrawals, and support services will come back online. Users will regain access to their accounts and assets.
Operations will be India-led: With Zanmai Labs in full control, the platform will now be run and regulated from India, which brings more stability and familiarity for Indian users.
The vote will happen soon: The court has asked for the revote process to be completed on an expedited basis. Users won’t have to wait long to take the next step.
This is the most significant opportunity users have had in two years to recover their assets and see WazirX restored.
5. Why It Matters for Everyone (Not Just WazirX Users)
Even if you’ve never used WazirX, this ruling is a watershed moment for the crypto space—especially in India and Asia.
Here’s why it matters:
Legal flexibility is possible: The judge was initially against the plan, but changed her stance after seeing meaningful corrections and regulatory clarity. That sends a positive signal to other crypto companies under stress.
A blueprint for recovery: This revised scheme sets a real-world example of how crypto firms can come back from catastrophic cyberattacks—without abandoning users or going dark.
Trust is being rebuilt: In a sector filled with failed promises and bad actors, this case shows that user-centric recovery—backed by the courts—is possible.
Regulators played a key role: The guidance and clarity from MAS was crucial in unlocking this turnaround. It shows that clear and responsive regulation can help—not just punish—crypto businesses.
Indian crypto wins a rare victory: With an India-based team taking charge and court backing in place, this becomes a rare crypto comeback story led by Indian stakeholders.
Final Word
WazirX’s story isn’t over, but it’s taken a major step forward.
The July 16 court ruling doesn’t just open the door for user repayments—it could redefine how crypto platforms respond to crises.
If the upcoming vote goes through, WazirX will become one of the first major platforms to recover from a massive cyberattack through a legal, regulated, and community-approved process.
Whether you’re a crypto investor, builder, or observer—this ruling shows what’s possible when transparency, compliance, and user interests lead the way.
And if you’re a WazirX user, your next move is simple:
Watch for the vote. Show up. And help write the next chapter.
Top comments (0)