By IndiaHub 
Why the scheme matters for creditors
Creditors have made it clear: timely access to funds matters. The fastest way to unlock 85% of balances is through the restructuring scheme without having to wait for lengthy liquidation processes. It also facilitates a continued recovery process for the next three years so that all creditors are made whole based on what their balances were when the platform assets were stolen by hackers.
Singapore jurisdiction and regulatory advantage
Zettai opted for restructuring under the High Court of Singapore to benefit from forward-looking regulatory clarity tailored for emerging technologies such as crypto. These regulations are designed to balance innovation with trust and offer frameworks that are known to produce fair, transparent outcomes for all parties involved.
Support from Creditors
For Zettai’s restructuring scheme, creditors can choose control of their funds by voting YES instead of going through extended periods of uncertainty and no clear conclusion in sight. WazirX’s creditors have complete faith in the scheme and its potential for recovery of lost funds, as was shown in its platform voting where 93.1% of creditors by count and 94.6% by value voted in favour of the Scheme.
Initial pause and legal turnaround
Despite a landslide support for the scheme, it faced a temporary pause for regulatory alignment when the Singapore High Court did not accept the application on 4 June, 2025, which was the hearing date for the Scheme. But in a pivotal legal milestone, the High Court of Singapore granted approval for a revote on the WazirX restructuring scheme on 16 July, 2025, based on user-first amendments in the scheme aligned with evolving clarity around the latest regulations.
Key amendments to the scheme
Rehearings of this nature, especially post-judgment reviews, are rare under Section 41(8) of the Supreme Court of Judicature Act 1969. The Scheme’s new additions for the latest hearing, which were brought forth in as little as 45 days, were two key components:
- Replacing the fund management and distribution entity for creditors from an international entity – Zanmai India, which is fully registered with the Financial Intelligence Unit of India (FIU-IND) will handle fund distribution for users which means faster and compliant fund disbursement.
- Compliance with the Financial Services and Markets Act (FSMA) was resolved when the Monetary Authority of Singapore (MAS) confirmed that Zettai would not fall under digital token licensing requirements, provided the restructuring is carried out in accordance with the approved scheme.
Transparency and forward motion
The updated scheme does not change the fundamentals, that is, how creditors’ funds will be distributed, and their subsequent recovery process. For full disclosure about the restructuring process to all stakeholders involved, all information and any subsequent modification in the Scheme needs to be communicated as clearly as possible, which Zettai has achieved successfully. This underscores an added layer of trust-building alongside a relentless determination to fight for users’ fund recovery. So essentially, the upcoming revote now offers a chance to reaffirm that trust the creditors had earlier demonstrated, paving the way for a timely restart.
What’s next for creditors
With the earlier order set aside and a new voting period scheduled from 30 July, 2025 till 6th August, 2025, WazirX is now positioned to move decisively. Once the amended scheme gets a majority of YES votes, the Scheme will be approved. Within 10 business days of the scheme being effective which will be finalised in the next court hearing, Indian entity Zanmai will start fund distributions within 10 business days, which could be in a few weeks after the voting ends.
This development is more than a legal green light. It’s a demonstration of how crypto companies can operate within strong legal frameworks, respond to evolving regulations, and protect user interests without compromising speed, compliance, or transparency.
This article is contributed by Prof. Dr. Ananth Padmanabhan, Dean of Vinayaka Mission’s Law School.