Introduction

The Singapore High Court has approved a modified restructuring plan for Zanmai Labs, the parent company of WazirX, one of India’s largest cryptocurrency exchanges. The decision marks an important step toward returning frozen user assets and restoring confidence in the troubled exchange.

Background: How WazirX Ended Up in Trouble

WazirX faced a severe liquidity and legal crisis after being linked to ongoing investigations by India’s Enforcement Directorate (ED) concerning money laundering and Know Your Customer (KYC) compliance. As a result, significant portions of user funds were frozen, leading to months of stalled withdrawals and growing frustration among traders.

The platform’s parent company, based in Singapore, filed for restructuring earlier this year in an effort to reorganize operations and negotiate a pathway to restore user balances.

Court-Approved Recovery Plan

Under the court-approved plan, Zanmai Labs will initiate a phased process to return digital assets to verified users. The company has been ordered to submit detailed reports on how funds will be recovered and redistributed.

Authorities confirmed that only users who passed full KYC verification will be eligible for refunds, a measure intended to prevent misuse and improve transparency.

What This Means for Users

For affected users, the decision represents a long-awaited relief. The recovery plan will prioritize small retail investors first, followed by larger institutional accounts. Users are expected to begin receiving notifications from the exchange within the coming weeks.

WazirX also announced that it will implement stricter compliance standards, partnering with external audit firms to ensure that similar issues do not arise in the future.

Broader Impact on India’s Crypto Industry

The case has drawn significant attention in India, where crypto exchanges have faced mounting pressure to align with global anti-money laundering standards. Regulators in Singapore and India are expected to use the WazirX case as a blueprint for how cross-border crypto firms should handle insolvency and user protection.

Analysts believe that this ruling could set an important precedent for how Asian crypto exchanges manage frozen or disputed assets moving forward.

Conclusion

The Singapore court’s approval of Zanmai Labs’ restructuring plan provides a clear path toward resolving one of India’s most high-profile crypto crises. If executed properly, it could help rebuild trust in the region’s crypto ecosystem—showing that user protection and regulatory compliance can coexist in an evolving market.