The July 14, 2025, Singapore High Court hearing on WazirX’s Scheme of Arrangement marks a critical phase in restructuring after the exchange’s $234 million hack in July 2024. Creditors will vote on a proposed recovery plan involving partial reimbursement via WRX tokens and equity in a new entity. Approval would freeze legal actions against WazirX, allowing controlled asset distribution while operations continue.
Key disputes center on hack liability, with creditors arguing inadequate security protocols. The hearing may compel WazirX to disclose forensic reports on the breach, influencing reimbursement terms. If rejected, liquidation becomes likely—potentially triggering India’s first major crypto exchange collapse. The court’s stance will set precedents for handling exchange insolvencies in Asia’s evolving regulatory landscape.
Successful restructuring could restore user trust through transparent fund segregation and third-party audits. However, the plan faces skepticism over token-based repayments’ volatility. The outcome will signal Singapore’s approach to balancing creditor protection with crypto innovation, especially as jurisdictions like Japan implement stricter exchange reserve rules.
