WazirX Scheme & Revote: Why ‘Not Your Keys’ Isn’t The Complete Story

For years, the crypto community has rallied behind a simple, powerful mantra: “Not your keys, not your coins.” It was a necessary warning — a way to remind users that centralized exchanges could fail, get hacked, or disappear without warning. If you didn’t control your private keys, you didn’t truly own your assets.

And while that remains a valuable guiding principle, the WazirX case challenges us to see the nuance. In July 2024, WazirX was hacked in one of India’s most significant crypto incidents — but unlike other collapses (think Mt. Gox or FTX), this story is about what happens when a centralized platform chooses to stand accountable.

A year later, a potential 85% crypto recovery is on the table, backed by Singapore High Court approval and now coming down to a final revote running from July 30 to August 6, 2025.

Let’s break it down — what happened, what WazirX is offering, and why this may become a watershed moment for crypto investor protection.

The Hack That Shook India’s Crypto Scene

On July 18, 2024, WazirX detected a major security breach involving unauthorized withdrawals from its hot wallets. Approximately $230 million worth of crypto assets were compromised. Withdrawals were immediately paused to prevent further damage.

The situation echoed crypto collapses of the past — except this time, something different happened.

Instead of vanishing or declaring bankruptcy, Zettai, the Singapore-based entity of WazirX, decided to pursue legal restitution.

Legal Recovery, Not Liquidation

The first step? Filing for a Scheme of Arrangement under the Singapore Companies Act, one of the few legal frameworks in the world that allows digital asset restructurings to be court-supervised.

Here’s what makes the WazirX Scheme of Arrangement noteworthy:

✅ Court-Backed: Approved by the Singapore High Court, confirming legal validity and oversight.

✅ In-Kind Recovery: Up to 85% of user claims to be returned in original crypto.

✅ Transparent Process: Multiple public townhalls, a dedicated claims portal, and regular updates published online.

✅ Low Barriers to Participation: A streamlined system for users to verify claims, vote, and track status.

This structure puts it miles ahead of typical crypto failure outcomes — where liquidation and years of legal battles are the norm.

Why There’s a Revote: A Regulatory Curveball, Not a Failed Attempt

The first vote on the WazirX restructuring scheme took place in March 2025. Over 93% of individual users voted YES.

However, the end was nowhere in sight yet! 

In May 2025, the Monetary Authority of Singapore (MAS) announced that new provisions under the Financial Services and Markets Act 2022 (FSM Act) would take effect from June 30, 2025. These changes introduced additional licensing requirements for digital token service providers, including restrictions on serving overseas users.

The High Court showed concerns that Zettai, WazirX’s Singapore-based entity, could no longer facilitate token distribution to users outside Singapore — including India — without facing new legal hurdles, and rejected the approved Scheme in the first place.

After coming this far, Zettai immediately filed an appeal with the Singapore High Court to amend the Scheme of Arrangement to bring Zanmai Labs (its India-incorporated subsidiary) into the picture.

The amendments made it clear:

• Zanmai, not Zettai, will now manage WazirX operations and facilitate crypto distributions.
• Users will still receive their tokens as shown in the Rebalanced Net Liquid Platform Assets (NLPA) page.
• Benefits such as market upside, future recoveries, and profit-sharing opportunities remain intact.

On July 16, 2025, the Singapore High Court accepted these amendments and set aside its earlier order from June 4. The court has now directed that a revote must be conducted so that creditors can explicitly vote on the amended scheme, because of new regulatory realities and material changes to the operational structure.

What Happens Next: Final Chance to Secure the Recovery

The revote window is live from July 30, 2025, 7:30 PM IST to August 6, 2025, 7:30 PM IST.

If the Amended Scheme is Approved:

✅ The Court sanctions the scheme.

✅ Zanmai India takes over operations and reopens WazirX.

✅ Token distributions begin within 10 business days of the effective date.

✅ Users regain access to their crypto.

If the Amended Scheme is Rejected:

⚠️ The matter returns to the court.

⚠️ Liquidation becomes a real possibility, subject to court discretion.

⚠️ Recovery becomes slow, uncertain, and most likely in INR, not crypto.

⚠️ Potential losses increase as legal, administrative, and asset-sale costs pile up.

This is not just a procedural formality — your vote will directly decide how (and if) your crypto is returned.

What 85% in Crypto Actually Means

To understand the value of the proposal, consider these points:

And unlike other high-profile collapses, WazirX is not proposing to return pennies on the dollar or offer proprietary tokens (like FTX’s FTT) as restitution. This is crypto for crypto.

What WazirX Did Differently

Most exchanges under fire go dark. WazirX, in contrast, did the following:

• Engaged global legal teams from India and Singapore within weeks of the hack.
• Froze affected wallets transparently, protecting remaining user funds.
• Communicated consistently via social channels, email updates, and FAQs.
• Filed for legal recognition under Singapore’s robust restructuring laws.
• Involved an independent administrator to protect user interest.
• Published legal documents for scrutiny — including affidavits, court orders, and scheme structures.

This level of accountability is rare. It signals that centralized platforms, when pressured by an engaged user base and regulatory scrutiny, can choose a better path.

Not Your Keys… But Maybe Still Your Coins?

The phrase “Not your keys, not your coins” was popularized by Bitcoin educator Andreas Antonopoulos. It warned users about keeping assets on custodial platforms. And it's still sound advice — especially after seeing collapses like:

• Mt. Gox (2014) – Over 850,000 BTC lost. Only partial recovery after 10 years.
• QuadrigaCX (2019) – CEO dies with the keys. Over $190 million locked.
• FTX (2022) – ~$9 billion shortfall. Complex bankruptcy ongoing.

But here’s the reality: Most users don’t self-custody.

• Hardware wallets are expensive and intimidating.
• Private key loss is permanent.
• Self-custody lacks support, especially for new users.

So people rely on exchanges. And when those exchanges step up — as WazirX is doing — they deserve acknowledgment.

Industry Implications: A New Precedent?

If the WazirX scheme passes, it would mark the first major court-approved crypto recovery in Asia, and one of the few globally to return assets in-kind.

This matters because:

• Crypto regulations in India are still evolving — this sets a precedent for protecting users while staying compliant.
• It shows that centralized exchanges can rebuild trust, even after breaches.
• It offers a legal playbook for recovery, usable by other exchanges, governments, and advocacy groups.
• It encourages user participation in governance, even post-crisis.

In short: This isn’t just about one exchange. It’s about redefining what’s possible in crypto accountability.

How to Vote (Step-by-Step)

If you're an eligible WazirX user, here's how to cast your vote:

• Go to the WazirX app or official site, then login to your account.
• Click on “Revote is Now Live!” action card.
• Read the Disclaimer before proceeding.
• Cast your vote before August 6, 2025.

This vote is binding. If a 75% majority (by value) votes YES, the scheme proceeds and becomes enforceable for all users — including those who abstain.

Final Thoughts: Recovery Over Rage

It’s easy to be cynical in crypto. After all, we’ve seen too many projects crash and burn, too many “founders” disappear, and too many users left holding nothing.

But the WazirX story is different.

• It’s not just a recovery plan — it’s a user-backed movement.
• It’s not vaporware — it’s court-validated and independently managed.
• It’s not a rugpull — it’s a chance at real restitution.

So yes, “Not your keys” still matters.

But in this case? Your coins might still be waiting.

🗳️ If you’re eligible, vote YES.

Because justice in crypto is rare — but not impossible.