WazirX Fund Recovery Plan Approved
WazirX has taken a major step toward recovering user funds lost in last year’s cyberattack by passing a debt restructuring plan on April 7, 2025. The Scheme of Arrangement, proposed by parent company Zettai Pte Ltd and filed with the Singapore High Court, received overwhelming support — 93.1% of creditors (representing 94.6% of the total value) voted in favor.
Over 1.4 lakh creditors participated, with 1.3 lakh voting “yes.” The next step is court approval in Singapore High Court. If approved, the fund distribution will start within 10 business days, and WazirX will slowly restart trading and withdrawals.
“We are grateful for the strong vote of confidence,” remarked Nischal Shetty, Founder of WazirX. “This consistent support across our entire base demonstrates shared belief in our restructuring approach and recovery plan.”
Delhi HC Questions Crypto Restructuring
The Delhi High Court has stepped in as WazirX faces backlash for allegedly restructuring user crypto assets without consent. Petitioners claim that the platform is making changes without user consent, affecting even those assets not hit by a past cyberattack. The court issued a notice on March 28, 2025, in response to a petition filed by Sudhir Verma and Kunal Dhariwal against the Union of India, challenging the handling of crypto assets on WazirX.
The application, part of a larger case filed in October 2024, seeks to stop the restructuring of user assets without consent. The court has now given the government two weeks to respond. The case has sparked concerns around user rights and data protection.
Petition Challenges ₹4,400 Cr WazirX Asset Restructuring
Notably, the petition challenges a Scheme of Arrangement dated March 12, 2025, proposed by Zettai Pte. Ltd. to manage and redistribute users’ crypto assets on WazirX, raising concerns over the lack of user consent and transparency.
The petitioners argue that crypto assets worth ₹2,700 crore were not affected by the July 2024 cyberattack. However, a total of ₹4,400 crore in assets including those unaffected are now being restructured. This includes rebalancing and liquidating assets to cover Zettai’s debts and operational costs, such as ₹259 crore in legal and administrative fees. They claim that this is being done without user consent, violating their rights.
Petitioners Slam WazirX for Forcing Legal Waivers, Dodging Indian laws
Furthermore, the restructuring plan also forces users to drop legal cases and protect the platform from any blame, even if they don’t agree with the plan. The petition also raises concerns about biased voting, since the process is being handled by a private advisor. To add to it, there are major data privacy worries, as personal and financial info of over 4 lakh Indian users is being shared with foreign companies.
Interestingly, the petitioners claim that taking the restructuring case to the High Court of Singapore is a way to avoid Indian legal checks, which could leave Indian users without a fair legal solution. They’ve asked for a Special Investigation Team (SIT) of experts in cybercrime, financial fraud, and digital assets to investigate the cyberattack and make sure Indian laws are properly enforced. The next hearing is scheduled for April 29.
