In a major development that could redefine the future of WazirX and its users, a new affidavit submitted to the Singapore High Court has laid out a more transparent, technically sound, and legally compliant roadmap to restart operations and begin repaying users. Filed on July 4, 2025, by Nischal Shetty, the recent affidavit addresses all the critical concerns raised by the Court and regulators, signaling a potential turning point in the ongoing WazirX restructuring.
For users who have been waiting anxiously since the 2024 cyberattack, the affidavit offers more than just hope. It provides concrete answers, regulatory clarity, and a framework re-designed to protect user interests. Let’s explore the key elements of this game-changing affidavit and understand why it may finally unlock the next phase of WazirX’s comeback.
Regulatory Clarity: MAS Says “No Breach”
One of the central concerns raised by the Singapore Court in its June 4 hearing was whether Zettai’s planned crypto distribution would violate Singapore’s Financial Services and Markets Act (FSMA). The affidavit addresses this head-on by including a written clarification from the Monetary Authority of Singapore (MAS).
According to MAS, if the crypto distribution is:
- A one-time event,
- Executed outside Singapore, and
- Aimed solely at repaying users/creditors under a court-approved scheme,
Then Zettai is not providing a digital token service under FSMA Section 137(3). This response is a major breakthrough — it confirms that Zettai’s actions will not breach Singaporean law, removing one of the biggest legal obstacles to user fund recovery.
Two Schemes, One Goal: Repaying Users
To cover all legal scenarios, the affidavit outlines two possible versions of the Restructuring Scheme: the Original Scheme and the Amended Scheme. Both aim to distribute available crypto assets to WazirX users and resume operations in a compliant manner.
Original Scheme
- Zettai retains custody of the crypto assets and directly executes the First Distribution.
- Zanmai India, which is FIU-IND registered, will handle the operations going forward.
- No new vote is needed if the Court agrees with MAS’s interpretation that there is no legal breach.
Amended Scheme
- If the Court still has concerns, Zettai proposes transferring the crypto to the other entity, which will handle the First Distribution.
- All operations will then shift to Zanmai India to ensure compliance with Indian regulations.
- A re-vote may be held to approve this amended plan, to which plans and timelines are already in place.
Regardless of which scheme is approved, the goal remains the same: deliver user repayments quickly and lawfully.
User Assets: Where Is the Crypto Now?
A key part of rebuilding user trust is clarifying how crypto assets are currently held. A detailed breakdown of custody arrangements, both before and after the July 2024 hack, has been mentioned in the affidavit.
Before the Cyberattack:
- A third party was there for wallet management (multisig setup).
- Funds were also stored on other exchanges.
After the Cyberattack:
- Assets were moved to renowned institutional custodians.
- Crypto is also held on selected exchanges, but Zettai retains control over when and how assets move.
- All funds are verifiably accounted for, confirmed by an Independent Assessor.
This level of transparency demonstrates Zettai’s intent to safeguard user funds and prevent any repeat incidents.
The First Distribution: Repayments Could Start Soon
One of the most significant outcomes of this affidavit is the confirmation that user fund repayments or the First Distribution can begin shortly, depending on the Court’s final order.
If the Court approves the Original Scheme, Zettai can proceed without delay. However, if the Court opts for the Amended Scheme due to lingering legal questions, Zettai is fully prepared to conduct a quick re-vote. The affidavit outlines a 30-business-day timeline that includes:
- An online webinar to explain changes,
- A 7-day voting period for verified creditors,
- Result verification by the same Independent Assessor.
This preparation ensures that user interests remain the priority, with no unnecessary delays.
Rebuilding the Platform: Zanmai India Steps In
Operations of the WazirX platform will be entirely shifted to Zanmai India, which is already registered with the FIU-IND, India’s financial intelligence unit. The affidavit clarifies that Zanmai will handle both INR-crypto and crypto-crypto services.
Technically, Zanmai India is ready. The platform’s operations will resume with a focus on regulatory compliance, security, and transparency.
Is This Operating Model Legal? Yes — And Common
The affidavit also defends WazirX’s corporate structure by citing similar setups used by other crypto exchanges.
- Zebpay: Uses an Australian entity to hold assets and an Indian FIU-registered entity to handle operations.
- CoinDCX: Until recently, it used a Lithuania-based entity to hold assets while operating in India.
These examples show that WazirX is not using a loophole — it’s following an industry-standard model, now enhanced for transparency and compliance.
Users Are Creditors — And Will Be Repaid
Legally, WazirX users are classified as unsecured creditors. This is standard for centralized exchanges, where user-deposited tokens are pooled for platform operations.
The affidavit reassures users that:
- Their right to recover funds is protected under the restructuring scheme.
- The First Distribution marks the beginning of repayment.
- Additional recovery may come from Recovery Tokens and future platform profits once operations resume.
The Road Ahead: July 15 Court Hearing
The Singapore High Court is set to hear further arguments on July 15, 2025. Depending on the outcome:
- The Original Scheme could be approved, allowing immediate user repayments.
- Or, a re-vote on the Amended Scheme may be ordered — a process already prepared for.
Either way, this affidavit marks a pivotal moment — one that could finally bring resolution for WazirX users.
Final Thoughts
The recent affidavit is a milestone in WazirX’s restructuring journey. It addresses every major concern with legal, operational, and technical clarity. More importantly, it places users at the center of the resolution process — offering real progress, not just promises.
If the Court accepts the arguments and clarifications submitted, WazirX users may soon see a long-awaited outcome: the beginning of repayments and the return of a more resilient platform.
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