The Singapore High Court has approved a revote on the amended restructuring scheme for cryptocurrency exchange WazirX, more than a year after a major cyberattack resulted in the loss of over \$230 million in user assets. The decision reverses an earlier order issued on June 4, following new documentation, regulatory clarifications, and structural revisions to the plan submitted by Zettai, the Singapore-based entity overseeing the process.
The development marks a critical step in WazirX’s attempt to recover from the July 2024 breach of its multi-signature wallet, which was jointly managed with crypto custody firm Liminal. The wallet was hacked by North Korean hacker group Lazarus who are notorious for similar activities globally. The United States, Japan and South Korea issued a statement regarding the same which mentioned “The United States and Republic of Korea additionally attribute to the DPRK, based on detailed industry analysis, thefts last year against WazirX for $235 million and Radiant Capital for $50 million.”
Regulatory Hurdles and Solutions in WazirX Restructuring
To enhance regulatory alignment and accelerate fund distribution, Zettai’s amended restructuring recommends fund distribution through Zanmai India—an entity registered with the Financial Intelligence Unit (FIU-IND), replacing the earlier Panama based structure. The move was aimed at addressing regulatory concerns and aligning the process with court accepted compliance norms. The Monetary Authority of Singapore also clarified that Zettai would not require a digital token licence under Singapore’s Financial Services and Markets Act, provided the scheme proceeds as sanctioned.
Impact on Indian Investors and Future of Crypto Regulation
Despite the legal and procedural delays, the initial creditor vote in favour of the scheme had a reported approval rate of 93.1%. If the amended version gains similar support, Zanmai is expected to begin distributing recovered assets within 10 business days of court approval.
The case has drawn attention for its cross-border legal implications, with many Indian investors questioning why proceedings are being handled in Singapore. The revote, however, represents a step towards resolution for users awaiting access to their frozen crypto holdings, and also establishes why the jurisdiction of Singapore was chosen for the restructuring.
The decision to allow a revote also highlights the increasing role of international legal cooperation in resolving complex crypto-related disputes. Legal experts note that Singapore’s well-established regulatory environment and its recognition of cross-border insolvency principles make it a strategic jurisdiction for handling such matters.
