WazirX, once one of India’s largest crypto exchanges, remains under intense scrutiny after the devastating cyberattack of July 2024, when nearly $235 million in user crypto assets were stolen. The breach froze withdrawals and trading, leaving users in limbo and triggering a prolonged legal and operational crisis. Now, the focus has shifted from the hack itself to whether the exchange’s recovery plan can survive judicial and regulatory review.
The latest developments show that the case is no longer just about compensating victims. It is increasingly about whether WazirX’s operating structure can comply with rules in both Singapore and India, and whether the exchange can lawfully resume business while executing its restructuring plan.
Singapore Court Seeks Answers on Licensing
As of June 4, 2025, the General Division of the High Court of the Republic of Singapore sent a letter to Zettai Pte. Ltd., the company operating WazirX, asking its lawyers to respond to a detailed set of compliance questions. The court highlighted that Singapore’s Financial Services and Markets Act 2022 will take effect on June 30, 2025, raising the issue of whether Zettai can legally continue operating WazirX without obtaining a DTSP Licence from the Monetary Authority of Singapore (MAS).
The court asked Zettai to explicitly confirm that it understands it cannot continue running WazirX in Singapore after that date without the required licence. It also sought clarity on whether the company intends to apply for the licence at all. If so, the court wants more detail on timing and the broader regulatory path forward.
This line of questioning matters because it moves the case beyond asset recovery and into core questions of business continuity. Even if a payout plan is approved, the long-term credibility of that plan depends heavily on whether WazirX can continue operating under a recognized regulatory framework.
FIU-IND Registration Becomes a Key Issue
The Singapore court also raised questions about India-facing compliance, specifically whether Zettai plans to register WazirX with FIU-IND, India’s Financial Intelligence Unit, for its operations. Zettai’s answer was clear: neither it nor its Panama-based subsidiary Zensui currently intends to seek separate FIU-IND registration for WazirX.
According to Zettai, its Indian legal counsel believes the lack of direct registration does not amount to a violation of Indian law. The company argues that FIU-IND registration is primarily tied to anti-money-laundering and counter-terror financing obligations and does not, in itself, determine whether WazirX’s crypto operations are legal.
Zettai further stated that another group entity, Zanmai India, is already registered with FIU-IND and handles reporting obligations for WazirX, including suspicious transaction reporting and responses to regulator requests. The company says Zanmai India has been in communication with FIU-IND since August 2023 and that the regulator has not objected to the existing arrangement or required Zettai itself to register. It also noted that neither Zettai nor Zanmai India has received notices or penalties from FIU-IND before or after the cyberattack in relation to registration.
Still, the fact that the court asked these questions underscores how important the corporate and compliance structure has become. In cross-border crypto operations, differences between who serves users, who handles custody, and who fulfills reporting obligations can become central in any restructuring review.
The User Payout Proposal: 85% First, 15% Later
For affected users, the biggest practical question remains straightforward: how much can be recovered, and when? Based on the published recovery framework, if the Singapore High Court approves the restructuring plan, users could begin receiving distributions within 10 business days of approval.
The proposal indicates that roughly 85% of a user’s portfolio value would be returned in the initial distribution, potentially in crypto tokens or USDT. The remaining 15% would not be paid immediately. Instead, it would be represented through tradable Recovery Tokens, which would be distributed over a period of two to three years.
These Recovery Tokens are intended to function as a bridge between immediate partial restitution and the uncertain process of restoring full value over time. If listed, users may be able to sell them on the market for liquidity. WazirX has also said it plans quarterly buybacks, with repayment supported by future profits and any successful recovery of stolen assets.
That structure offers a path toward eventual reimbursement, but it also introduces additional dependency on future execution. The value of the second-stage recovery is tied to WazirX’s ability to relaunch, remain operational, and generate enough income to support token buybacks.
Why the Court Hearing Matters
The Singapore court hearing scheduled for May 13, 2025 has been framed as a make-or-break event for the exchange’s restructuring effort. If the court signs off on the plan, users could gain near-term access to a large share of their trapped assets. If it does not, the entire process could be pushed back substantially, with delays potentially extending into 2026 or later.
That is why the legal review carries significance beyond routine procedure. Court approval would not only activate the distribution timeline, but also signal that the proposed structure has cleared at least one major institutional barrier. Conversely, rejection would raise fresh questions about whether users face a more prolonged insolvency-style process, additional disputes over jurisdiction, or a more fragmented path to recovery.
Risks Remain Even If the Plan Is Approved
Approval of the restructuring plan would not eliminate the risks surrounding WazirX. Several material uncertainties remain. First, regulatory obligations in Singapore could become more demanding once the FSM Act takes effect, particularly if the platform cannot secure the necessary licence. Second, any change in Indian regulatory interpretation regarding FIU-IND registration or reporting accountability could complicate operations.
Third, the success of the Recovery Token mechanism depends on actual business performance after relaunch. If WazirX fails to regain users, trading activity, or profitability, quarterly buybacks may fall short of expectations. Finally, the prospect of recovering stolen assets remains uncertain, especially given the scale of the original breach and the attribution to North Korean hackers.
For users hoping for full restitution, that means the road ahead remains conditional. The initial payout may provide significant relief, but the final outcome still depends on a mix of court approval, regulatory feasibility, operational recovery, and asset tracing success.
A Turning Point for WazirX and India’s Crypto Market
The WazirX case has evolved from a major hack into a broader test of how crypto platforms handle collapse, restructuring, and cross-border compliance. It also highlights the fragility of trust in large exchanges when legal entities, regulatory obligations, and operational responsibilities are spread across multiple jurisdictions.
For Indian crypto users, the stakes are unusually high. WazirX was once a flagship platform in the local market, and its failure reverberated across the industry. The current recovery proposal offers a structured path forward, but one that is far from guaranteed. Users now face a critical waiting period in which court decisions and regulatory answers may determine whether the exchange can transition from crisis management to a credible recovery process.
In the near term, the market will be watching three things closely: whether the restructuring plan wins court approval, whether Zettai can present a convincing licensing and compliance strategy, and whether the initial payout timeline can be met. Together, those factors will shape not only the fate of WazirX, but also confidence in how crypto failures are resolved in one of the world’s largest retail digital asset markets.