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WazirX Receives Court Extension for Restructuring Process

Key Points:

  • WazirX gains court extension amid restructuring efforts post-hack.
  • $235 million cyber theft disrupted operations.
  • 52% creditor claims proposed via $284 million assets.

WazirX, operating under Zettai Pte Ltd, has secured a moratorium extension from the Singapore High Court, allowing it to proceed with restructuring efforts despite facing prior setbacks.

The court’s decision provides crucial legal protection through June 2025, allowing WazirX to navigate the restructuring process after a significant cyberattack impacting its financial stability.

WazirX, established as a prominent Indian crypto exchange and now under Zettai Pte Ltd, has encountered financial disruptions following a $235 million cyber theft. The Singapore Court’s recent moratorium extension offers more time for restructuring initiatives.

WazirX had secured creditor approval for a restructuring plan but faced jurisdictional challenges in Singapore. Court’s protection now seeks to restore investor confidence through enhanced legal and operational strategies.

The cyberattack significantly affected WazirX’s financial reserves, though efforts to compensate creditors were outlined. Transparency initiatives, including a published proof-of-reserves, aim to rebuild community trust in the midst of ongoing legal maneuvers.

“The Court also extended the moratorium, originally set to end on June 6, 2025, providing the exchange with continued legal protection while proceedings continue. This development gives WazirX a crucial window to reinforce its case. The company now awaits further instructions from the Court and has assured its users of ongoing efforts to resolve the situation transparently.” – WazirX Official Statement

Potential outcomes include regulatory scrutiny on cross-border operations and impacts on other regional exchanges. Enhanced security measures could emerge as industry standards adapt to increasing cyber threats and legal challenges in a globalized cryptocurrency economy.

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