WazirX Files Application in Singapore’s High Court to Pursue Restructuring

• WazirX has resorted to a restructuring plan to recover from a recent hack.
• The exchange said it would file an application in the High Court of Singapore.
• Plans to restore INR balances are underway following public outcry.

WazirX announced on Friday its plan to apply to the High Court of Singapore to ensure it gets the “time and breathing space” needed to pursue a restructuring plan under a “Scheme of Arrangement.”

The exchange said the scheme would facilitate equitable and user-approved distribution of the crypto assets remaining on the platform following a hack on July 18. The hack, one of the biggest in 2024, claimed over $230 million , or 45% of user assets.

Plan to Enable INR Withdrawals and Return User Cryptos

According to a statement dated August 23, WazirX customers might have to wait for a creditor-approved and court-sanctioned scheme to recover their crypto assets from the exchange.

“While this legal process will be driven by us and our advisors, ultimately users will be able to vote on and approve a restructuring proposal before the Scheme is effective – this means that users will be kept updated on all material developments and your opinions understood via polls and town halls to ensure that the proposed restructuring captures what users want,” WazirX said.

In the meantime, the exchange plans to lift the suspension on withdrawals of INR balances on August 26, after which users can pull their fiat balances in phases. However, WazirX clarified that only 66% of INR balances would be available for withdrawals as the remaining amount is frozen.

Per the statement, users can withdraw up to half the 66% limit on their INR balances from August 26 to September 8. Withdrawals for the full 66% limit would be opened between September 9 and September 22.  

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