Indian crypto exchange WazirX has suffered another blow in its struggle to recover from a massive $230 million hack in July 2024, as the Singapore High Court has officially declined its proposed restructuring plan, according to a statement issued by the exchange. The court’s decision now places further uncertainty on the future of the once-prominent trading platform.
Court Ruling Derails Recovery Hopes
“The Honourable Singapore High Court issued an order declining to approve our proposed restructuring plan,” the WazirX team stated, expressing disappointment while maintaining that all assets remain safe. The exchange also affirmed it is exploring alternative legal avenues, including an appeal.
While WazirX has tried to position the ruling as a temporary legal setback, creditors and users are growing increasingly restless, especially in light of the exchange’s missed distribution timeline originally promised for February 2025. Many users took to social media, labeling the situation a “scam wrapped in court drama,” accusing the company of using legal delays as a smokescreen for avoiding repayments.
Users Cry Foul Over Panama Move
Tensions have escalated following the leak of legal documents indicating WazirX’s relocation of operations to Panama under a new name: Zensui Corporation. As part of its parent company Zettai’s efforts, the documents reveal steps have been taken to shift all crypto-related services to the new offshore entity, sparking fears among creditors that the move is part of a deliberate scheme to dodge liabilities.
Critics argue this corporate reshuffle amid unresolved compensation issues further proves intentional mismanagement or worse. “They’re just buying time, relocating, and hoping we’ll give up,” one user alleged on X (formerly Twitter), tagging Indian enforcement agencies in their call for action.
Transparency Under Scrutiny
The exchange is no stranger to controversy. After the July 2024 exploit, many in the community speculated about an inside job, citing a lack of transparency and delayed communication from top executives. With the restructuring bid now rejected, the situation appears to be sliding deeper into a full-scale legal and reputational crisis.
Several community members and legal experts are calling for criminal investigations and action by Indian authorities. Some are now openly demanding the arrest of CEO Nischal Shetty, who has remained relatively silent amid the unfolding backlash.
Final Thoughts
With its restructuring plan denied, user trust in shambles, and operations shifting offshore, WazirX’s future hangs in the balance. What was once one of India’s most active exchanges now faces a growing storm of lawsuits, accusations of fraud, and regulatory scrutiny across multiple jurisdictions.
Unless WazirX or its successor Zensui can deliver swift transparency, resolve user claims, and regain legal footing, the exchange risks becoming another high-profile cautionary tale in the volatile crypto landscape.
