What happened?
The Singapore High Court has overturned its previous decision rejecting WazirX’s restructuring plan and ordered a new creditor vote on an amended scheme. This development could allow the exchange to reopen and begin distributing funds to users affected by a $230 million hack. The court also extended Zettai’s moratorium protection, which prevents creditors from pursuing litigation while the restructuring is underway.
Who does this affect?
This decision primarily impacts WazirX users who have been unable to access their funds since the hack in July 2024. It also affects creditors involved with WazirX, as they will participate in the new vote on the amended restructuring plan. Additionally, it impacts Zettai, the parent company of WazirX, which has faced regulatory and legal challenges due to the hack and its handling of the situation.
Why does this matter?
The court’s decision to allow a new vote and extend the moratorium could have significant market implications, as it may enable WazirX to resume operations and stabilize user trust. Successful restructuring would allow for structured repayments and potentially restore confidence in the platform, potentially boosting its market standing. However, delays and uncertainty continue to influence market sentiment, affecting both users and potential investors in the cryptocurrency exchange.