WazirX Users Face Uncertainty as Singapore High Court Rejects Restructuring Scheme

The wait for reimbursements just got longer for WazirX users who lost their funds in the devastating $230 million (approximately Rs. 1970 crore) hack last year. In a shocking turn of events, the High Court of Singapore has rejected WazirX’s restructuring scheme, leaving the cryptocurrency exchange and its affected users in a state of limbo.

A Setback for WazirX: Understanding the Restructuring Scheme

The restructuring scheme, which was approved by a majority of WazirX’s creditors in April, was seen as a beacon of hope for the exchange and its users. The scheme was designed to provide a roadmap for reimbursements, and its approval by the creditors was a significant step forward. However, the court’s rejection has thrown a spanner in the works, and WazirX is now forced to go back to the drawing board.

WazirX’s Response: Evaluating Legal Options and Appealing the Decision

In a statement posted on X (formerly Twitter), WazirX expressed its disappointment and surprise at the court’s decision. "Our primary focus remains to begin distributions as soon as possible. Towards this goal, we are currently evaluating all available legal options in consultation with our legal and advisory teams, and will be appealing against the decision of the Singapore High Court," the exchange said. This response suggests that WazirX is committed to finding a solution and is exploring all possible avenues to ensure that its users receive their rightful reimbursements.

The Road to Restructuring: A Brief Timeline

To understand the context of the court’s decision, it’s essential to take a step back and look at the events that led to this point. Here’s a brief timeline:

• January: The court reviews the restructuring scheme and allows WazirX to approach creditors.
• April: A majority of WazirX’s creditors (93%) approve the restructuring scheme, paving the way for reimbursements.
• May 16: The court defers the case to another date and directs WazirX and its majority stakeholding entity, Zettai, to submit additional documentation.
• June 4: The Singapore High Court rejects WazirX’s restructuring scheme, citing the need for further review and documentation.

Impact on WazirX Users: What’s Next?

The court’s decision has left WazirX users in a state of uncertainty, wondering when they will receive their reimbursements. While the exchange has assured its users that the net liquid platform assets (NLPA) remain safe, the lack of clarity on the next steps is causing concern. WazirX has promised to provide updates in due course, but for now, users are left in the dark, waiting for a resolution to this saga.

A Long and Winding Road to Recovery

The rejection of WazirX’s restructuring scheme is a setback, but it’s not the end of the road. The exchange has vowed to appeal the decision and explore all available legal options. This process will likely take time, and WazirX users will need to be patient and vigilant. As the situation unfolds, it’s essential to stay informed and up-to-date on the latest developments.

In conclusion, the Singapore High Court’s rejection of WazirX’s restructuring scheme has added a new layer of complexity to the already convoluted situation. While WazirX users face an uncertain future, the exchange’s commitment to finding a solution and reimbursing its users is a beacon of hope. As the situation continues to evolve, one thing is clear: the road to recovery will be long and winding, but with perseverance and determination, WazirX and its users can overcome this challenge and emerge stronger.

Content originally published by www.gadgets360.com