The Indian crypto community has been closely following the dramatic saga of WazirX, once the nation’s largest crypto exchange, since its catastrophic hack in July 2024. With over $230 million in user assets stolen and months of uncertainty, users are now anxiously awaiting the outcome of a pivotal Singapore court hearing on May 13, 2025. 

This blog unpacks the latest developments, court proceedings, and the detailed payout plan for affected users, presenting a clear, comprehensive, and up-to-date analysis.

Latest Update: As of June 4, 2025

The General Division of the High Court of the Republic of Singapore has sent a letter to Zettai Pte. Ltd., the company that runs WazirX, asking their lawyers to answer a set of very specific questions. These questions are about whether WazirX is following certain financial rules and what their plans are to comply with regulations in Singapore and India. Here’s what the court is asking-

Confirming Licensing Requirements in Singapore:

• The court is pointing out that a new law, the Financial Services and Markets Act 2022 (FSM Act), starts on 30 June 2025in Singapore. According to this law, Zettai cannot operate WazirX without a specific license, known as a DTSP Licence,from the MonetaryAuthority of Singapore (MAS), Singapore’s financial regulator.
• The court wants Zettai to confirm that they understand they can’t run WazirX after 30 June 2025 without this license.

Will Zettai Apply for the Singapore License?:

• The court is asking whether Zettai plans to apply for the DTSP Licenceto keep running WazirX legally in Singapore.

Details About the License Application (if applicable):

• If Zettai says “yes” to applying for the DTSP Licence, the court wants to know:

  Court Query 4: Does Zettai Plan to Register with FIU-IND?

  What the Court Asked: The court inquired whether Zettai intends to register WazirX with the FIU-IND for its operations.

  Zettai’s Response:

  • Zettai says they (or their Panama subsidiary, Zensui) don’t plan to registerwith FIU-IND for WazirX’s operations. Here’s why:
    • Their Indian legal advisor, Justice Srikrishna, states that Zettai hasn’t broken any Indian laws by not registering with the FIU-IND. There is no rule in India preventing Zettai from operating a crypto platform like WazirX without an FIU-IND registration.
    • FIU-IND registration is primarily aimed at preventing money laundering and terrorist financing, but Zettai argues that these rules don’t affect the legality of their crypto operations.
    • Another Zettai subsidiary, Zanmai India, is already registered with FIU-IND and handles all reporting duties for WazirX, including for crypto-to-crypto and INR-to-crypto transactions. Zanmai India has been communicating with FIU-IND since August 2023, confirming that another entity (not Zanmai) handles crypto-to-crypto transfers, and FIU-IND hasn’t objected or asked Zettai to register.
    • Neither Zettai nor Zanmai India has received any notice or penalty from FIU-IND about registration before or after the cyberattack.
    • Zanmai India already submits suspicious transaction reports and responds to FIU-IND’s requests, covering all WazirX operations, so Zettai believes additional registration isn’t needed.

  Court Query 5: If Registering with FIU-IND, When and How Long?

  What the Court Asked: If Zettai plans to register with FIU-IND, the court wanted to know-

  (a) when they would apply and

  (b) how long they expect it to take for FIU-IND to decide.

  Zettai’s Response:

  • Since Zettai (or Zensui) doesn’t plan to register with FIU-IND (as stated in Query 4), this question doesn’t apply.
  • However, they add that if new Indian regulations require registration in the future, they or Zensui could register without any major issues. They also note that Zanmai India, their subsidiary, is already registered with the FIU-IND for WazirX’s operations.

  Background: The 2024 WazirX Hack

  In July 2024, WazirX suffered a devastating cyberattack attributed to North Korean hackers, resulting in the theft of nearly $235 million in crypto assets. The breach forced the exchange to halt all withdrawals and trading, leaving millions of users in limbo and triggering a crisis of confidence in Indian crypto platforms.

  Legal and Court Updates: Where Do Things Stand?

  Singapore High Court: The Decisive Hearing

  Indian Courts: Limited Relief

  Potential Risks

  What Happens Next? Key Dates & What to Watch

  Conclusion: Is WazirX’s Recovery Plan the Light at the End of the Tunnel?

  WazirX’s journey from India’s top crypto exchange to the epicenter of a massive hack and legal battle has been turbulent. The upcoming Singapore court hearing on May 13, 2025, is a make-or-break moment. If approved, users can expect to recover the majority of their assets within weeks, with the remainder distributed over the next few years through Recovery Tokens. However, skepticism remains high, and the ultimate success of the plan depends on WazirX’s ability to relaunch, generate profits, and recover stolen assets.

  For WazirX users, the coming weeks will be critical. While the recovery plan offers hope, vigilance and patience are still required as the legal process unfolds and the platform works to regain trust and stability.

  FAQs

  1. What is the significance of the WazirX court hearing on May 13, 2025?

  The Singapore High Court hearing on May 13, 2025, will decide whether to approve WazirX’s restructuring plan. If approved, user payouts will begin within 10 business days. 

  2. How much of my funds can I expect to recover from WazirX?

  Users are expected to recover about 85% of their portfolio value in crypto tokens or USDT shortly after court approval in May 2025. The remaining 15% will be distributed over 2–3 years via tradable Recovery Tokens, subject to WazirX’s profits and asset recovery.

  3. What are Recovery Tokens, and how do they work?

  Recovery Tokens (RTs) are digital tokens representing the remaining 15% of user claims. They can be traded for liquidity if listed and will be bought back quarterly by WazirX.

  4. What steps should WazirX users take to claim their funds?

  Users should check their allocation on WazirX’s First Distribution page, verify their accounts as needed, and monitor updates via the WazirX app, blog, or official social media. 

  5. What are the risks if the WazirX recovery plan fails?

  If the court rejects the plan, payouts could be delayed to 2026 or later. Other risks include insufficient profits limiting Recovery Token buybacks, regulatory hurdles slowing platform relaunch, and uncertainty in recovering stolen assets, which could prevent full 100% recovery.