Hacked WazirX Faces Restructuring Difficulties Amid Court Block

Minseung Kang

Summary

WazirX's restructuring plan has reportedly been rejected by a Singaporean court.
It was reported that prospects for the creditor compensation schedule have become uncertain.
It was analyzed that both the compensation schedule and restructuring process are inevitably facing difficulties.

The restructuring plan of Indian virtual asset (cryptocurrency) exchange WazirX, which suffered a large-scale hacking incident last year, has been rejected by a Singaporean court. There are concerns that the creditor compensation schedule has once again become uncertain.

According to CoinDesk, a media outlet specializing in virtual assets, the Singapore High Court decided not to approve the creditor repayment plan proposed by WazirX on the 5th (local time). Previously, after suffering a hack of $230 million (about ₩313.34 billion), WazirX pursued restructuring procedures to avoid liquidation, and compensation was scheduled to begin in April.

The restructuring plan included launching a decentralized exchange (DEX), issuing a recovery token, and conducting buybacks to secure liquidity, but as the court has disapproved it, analysts say that both the compensation schedule and the promotion of restructuring have inevitably run into trouble. WazirX stated, "We respect the court's decision and will focus on starting compensation as quickly as possible."