WazirX users may recover funds within weeks, after Singapore court greenlights restructuring scheme

In what could mark the final stretch of a long recovery journey, users of crypto exchange WazirX are perhaps now just weeks away from seeing their funds again.

The Singapore High Court has sanctioned the creditor-approved restructuring scheme proposed by Zettai Pte Ltd, the company overseeing WazirX’s revival. This comes after 95.7% of voting creditors, representing 94.6% of the total creditor value, voted in favour of the scheme.

The ruling brings to a close months of corporate triage after one of the largest cyber attacks in crypto history crippled the exchange.

WazirX’s founder, Nischal Shetty, called the court sanction “a key milestone” and pledged that operations would resume “within 10 business days” once the scheme takes legal effect. “To everyone who stood by us with patience and belief — thank you,” Shetty said in a statement.

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However, before users can log back in and check their balances, there’s a minor bureaucratic hoop to clear.

Zettai must lodge the court order with Singapore’s Accounting and Corporate Regulatory Authority (ACRA). This is, in legal terms, an administrative step. ACRA doesn’t review or opine on the merits of the sanctioned scheme. Once the order is lodged, it becomes part of Zettai’s corporate record.

That lodgement is the final legal step. The scheme then becomes binding on all creditors, whether or not they supported it. At that point, Zettai can begin implementing its plan: effecting the first distribution, issuing recovery tokens, and rebooting the platform.

The plan uses a hybrid approach: a portion of compensation is distributed directly (cash/crypto), and the remainder via recovery tokens, which entitle holders to future profit distributions, buybacks, etc.

These recovery tokens will be tradeable instruments representing claims on future profits, revenues, and recovery efforts of the rebuilt platform. There could be periodic buybacks of recovery tokens funded from platform profits.

WazirX has partnered with BitGo, a US-based digital asset custodian, to shore up fund security before relaunch.