The Singapore High Court has reversed its earlier ruling, paving the way for a WazirX revote that could lead to user crypto distribution.
WazirX Given Greenlight By Court For Revote
In a new post on X, Indian crypto exchange WazirX has shared details of the Singapore High Court hearing held on July 16th. The court has set aside its earlier rejection of the platform’s restructuring proposal and has approved a fast-tracked revote that could allow the exchange to open back up.
WazirX closed its doors almost exactly a year ago, on July 18th, after falling prey to a notorious hack that drained it of user crypto funds amounting to $234 million. At the time, the exchange held about $500 million in its reserves, meaning almost half of its assets were wiped out.
The hack was later linked with North Korean hackers part of the Lazarus Group. When the breach became known, the exchange suspended deposits and withdrawals, and to this day, these channels haven’t been reopened, although that may be about to change.
WazirX has been planning a restructure through its parent company Zettai PTE LTD and during a vote, the proposal ended up finding overwhelming support from the creditors. The Singapore High Court rejected the plan during a hearing on June 4th, however, citing concerns over regulatory compliance with Singapore’s Financial Services and Markets Act (FSMA) and the involvement of Panama-based entity Zensui in the distribution process.
The company amended the proposal and returned to court again. After the latest hearing, the Singapore High Court has now given its greenlight on the updated plan and allow the exchange to conduct a fast-tracked revote with its creditors.
Alongside the news, Nischal Shetty, CEO of WazirX, has broken a long silence on X to comment on the outcome. “The broad amendment is that instead of Zettai, it will be Zanmai helping with the fund distribution if the scheme is approved,” noted Shetty.
Zanmai Labs is the Indian entity behind WazirX that manages the Indian Rupee (INR) component of the platform. Zettai, on the other hand, was the one looking after the crypto side of things, which is why the firm has been at the center of the legal proceedings.
The data of the vote will be announced soon, according to Shetty. “If the amended scheme is approved by the requisite majority of creditors and sanctioned by the court, it is contemplated that the WazirX platform will reopen,” said WazirX in the announcement.
It now remains to be seen how things will develop from here and whether the platform’s users who have been waiting for their crypto for over a year will finally get it back.
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