The Singapore High Court has rejected the restructuring proposal of cryptocurrency exchange WazirX, which had been hit by a $230 million loss last year due to a hacked multi-signature wallet. The proposed plan, which claimed 93.1% of voting creditors representing 94.6% in value had voted in favor, aimed to facilitate token distributions to users who have been unable to access their crypto for nearly a year.
WazirX expressed respect for the court’s decision and commitment to complying with legal and regulatory processes. The development means the company must now explore alternatives as customers grow increasingly desperate to access their locked-up cryptocurrency. The exchange stated that its primary focus remains on initiating distributions as soon as possible and is currently evaluating all available legal options with its legal and advisory teams.
The crypto exchange also mentioned that it will appeal the Singapore High Court’s decision. Notably, the decision does not impact the Net Liquid Platform Assets (NLPA), which remain safe. WazirX had previously indicated that the first distributions would be processed within 10 business days if the restructuring scheme became effective.
Additionally, there have been reports that WazirX is shifting its base to Panama and incorporating a subsidiary called Zensui Corporation, although the company has not made an official announcement regarding this matter.
Key Developments
- Singapore High Court rejects WazirX’s restructuring proposal
- WazirX to explore alternative options for customer distributions
- NLPA assets remain safe despite court decision
- Reports emerge of WazirX potentially shifting base to Panama
The rejection of WazirX’s restructuring proposal by the Singapore High Court marks a significant development in the ongoing saga of the cryptocurrency exchange. As the company navigates this legal setback, its customers remain in limbo, awaiting access to their cryptocurrency holdings.
