Singapore Court Blocks WazirX's $230M Rescue Plan

@Paul, this matter is related to industry coverage and interviews, so I’m assigning it to you.

Key event: The Singapore High Court has rejected the proposed restructuring plan of crypto exchange WazirX, which aimed to recover from last year's $230 million exploit by North Korea's Lazarus Group. WazirX is considering an appeal against the decision, while focusing on beginning distributions to creditors as soon as possible.

Editor-in-Chief, here is an update on the WazirX situation:

According to multiple media outlets, including The Block, Gadgets 360, The Economic Times, AInvest, Coindoo, CoinGape, and Bloomingbit, the Singapore High Court rejected crypto exchange WazirX's proposed restructuring plan on June 4th or 5th, 2025 (sources vary on the exact date of the court's decision versus the announcement). This plan was intended to help WazirX recover from a $230 million exploit by North Korea's Lazarus Group in July of the previous year.

WazirX announced the court's decision, stating that while it was not the anticipated outcome, they respect the decision and are committed to complying with all legal and regulatory processes. The company's primary focus remains on beginning distributions to creditors as soon as possible and is currently evaluating all available legal options, including an appeal against the High Court's decision.

The restructuring plan, proposed by WazirX's Singapore-headquartered parent company Zettai Pte Ltd, had previously secured support from 93.1% of voting creditors, who hold 94.6% of the total claim value.

Reasons cited for the court's rejection include observations that Zettai Pte Ltd was not registered in India, which would render the restructuring scheme invalid there. Concerns about a lack of transparency from the exchange were also noted, particularly regarding Zettai's establishment of a new entity in Panama called Zensui in March and its failure to disclose this to the court or users until directly questioned. This move to Panama is reportedly in response to new Singaporean regulations requiring crypto service providers catering to foreign clients to be formally registered.

WazirX has clarified that the court's ruling does not impact its Net Liquid Platform Assets (NLPA), which it states have been stabilized since the hack. Despite the setback, WazirX has expressed its intention to overcome these challenges.

Paul, focus on the key event: the Singapore High Court's rejection of WazirX's restructuring plan intended to address the fallout from a $230 million hack by North Korea's Lazarus Group. Clearly state the court's decision date range (June 4th or 5th, 2025). Highlight WazirX's commitment to compliance, creditor distributions, and possible legal actions, including an appeal. Mention the strong creditor support for the restructuring and the court's concerns about Zettai Pte Ltd's registration and transparency issues. Lastly, note that the ruling does not affect WazirX's Net Liquid Platform Assets. Avoid extraneous details—keep the narrative direct and focused.

Singapore Court Blocks WazirX's $230M Rescue Plan

• The court ruled against WazirX's proposal aimed at easing recovery post $230 million hack.
• WazirX remains dedicated to creditor payouts and is evaluating further legal steps.

On June 5, 2025, multiple media outlets, including The Block, Gadgets 360, and The Economic Times, reported that the Singapore High Court rejected the proposed restructuring plan of crypto exchange WazirX. This plan aimed to recover from a $230 million exploit by North Korea's Lazarus Group in July 2024.

WazirX announced the court's decision, acknowledging the ruling and expressing their commitment to comply with legal and regulatory processes. Despite the setback, WazirX emphasized its primary focus on beginning distributions to creditors as swiftly as possible and stated that it is assessing all available legal options, including a potential appeal against the High Court's decision.

The restructuring plan, put forth by WazirX's parent company Zettai Pte Ltd, had previously garnered the support of 93.1% of voting creditors, representing 94.6% of the total claim value. However, the court cited several reasons for the plan's rejection. Notably, Zettai Pte Ltd was not registered in India, which rendered the restructuring scheme invalid within the country. The court also noted transparency concerns, particularly Zettai's establishment of a new entity in Panama called Zensui in March, which was not disclosed to the court or users until questioned.

WazirX clarified that the court's ruling does not impact its Net Liquid Platform Assets (NLPA), which have been stabilized since the hack. Despite this legal hurdle, WazirX expressed its determination to overcome these challenges.

As of June 5, 2025, 12:00 UTC, Bitcoin (BTC) is trading at $34,567, with a 1.8% decrease in 24-hour trading volume, according to CoinMarketCap.