The restructuring plan of the Indian Crypto Exchange Wazirx has hit a major obstruction, in which the Singapore High Court has declined to approve the proposed plan of Crypto Exchange to repay the creditors.
This decision delays any payment that was expected to begin in early April 2025. “The Honorable Singapore High Court issued an order to approve our proposed restructuring plan,” Wazirux asked the creditors in an email.
“While this result was not what we guessed, we respect the court’s decision and are fully committed to compliance with all legal and regulatory procedures. Our primary focus remains to start distribution as soon as possible,” it has been claimed.
The court approved Wazirx’s plan in January in January following the exchanges in view of the disastrous $ 230 million hack by the Lazarus Group of North Korea.
The scheme would have allowed the creditors to vote for whether to accept the plan, with the promised payment within 10 commercial days of activation.
The scheme also included starting a decentralized exchange (DEX), issuing recovery tokens and applying periodic buyback to support liquidity.
But with the latest decision of the court, the schedule for creditor repayment is again thrown into uncertainty. If the restructuring eventually fails, the Wazirx can withstand liquidation under Section 301 of the Singapore Company Act, resulting in fire-selling prices for the remaining assets and less compensation for the creditors, as stated earlier.
Wazirx has faced heavy criticism for limited success in its slow communication and asset recovery, and has severely limited the ability of users to interact with its social media accounts.
The exchange once dominated the crypto trading in India, but many are now wondering if they will ever see their money again.
