Over 4.4 million users of Indian crypto exchange WazirX have been dealt a painful setback after the Singapore High Court formally rejected the company’s proposed restructuring plan. This plan was WazirX’s last significant attempt to begin refunding users whose funds have remained locked since last year’s $230 million hack.
The court’s rejection has put an immediate hold on any possibility of user withdrawals. Despite earlier communication from the exchange suggesting that distributions could begin by April 2025, this judgment has now left all timelines in disarray.
In an email sent to users on Tuesday, WazirX confirmed that the Singapore High Court had declined to approve the restructuring scheme. The company said it is currently reviewing legal options and may consider filing an appeal. However, no new timeline has been given, and no clear next steps have been communicated to users.
The rejected plan had included provisions for launching a decentralized exchange, issuing recovery tokens to affected users, and beginning token buybacks to support ecosystem liquidity. Most importantly, it was expected to kickstart partial user payouts within ten working days of implementation.
That outcome now appears to be indefinitely postponed.
For thousands of retail investors, freelancers, and crypto traders who had relied on WazirX, the ruling has triggered frustration, anxiety, and a fresh wave of distrust. Many users had held on for months, hoping that June would finally bring some clarity. But instead of answers, all they’ve got is silence.
What’s made things worse is that no one from the top has spoken up. Not even founder Nischal Shetty has addressed users or shared a single update since the court rejected the plan, other than the email. The company’s social media channels have restricted replies and user engagement, making it nearly impossible for users to ask questions or demand updates.
Meanwhile, the WRX token, which is native to the WazirX platform, crashed by over 39% in a single day following news of the court’s decision. The sudden crash in the WazirX token has wiped out a big chunk of value for holders, adding more fear and frustration across user communities.
Now, if WazirX doesn’t appeal the court’s decision or come up with a fresh plan quickly, the company could be forced into liquidation under Section 301 of Singapore’s Companies Act. If that happens, whatever assets are left could be sold at dirt-cheap rates, and users might recover far less than they were hoping for, or maybe nothing at all.
What’s making it worse is that WazirX has quietly moved its legal base to Panama. This has left Indian users completely lost. They don’t know what their rights are anymore or who they’re even supposed to contact for answers.
The extended moratorium deadline expires tomorrow, June 6. For now, this date stands as the last remaining hope for users who have been waiting for over ten months to access their crypto funds.
WazirX has insisted in its message that assets held under its NLPA structure remain safe. But without the ability to withdraw, users say that reassurance means very little. Across online forums and social platforms, the sentiment is growing louder.
People want accountability. They want to know if their funds will ever return. And above all, they want transparency, something they believe has been missing for far too long.
