The ongoing turmoil at crypto exchange WazirX has entered Singapore’s High Court, where users are suing its local entity, Zettai, demanding access to millions of dollars in frozen funds amid allegations of an internal mishandling rather than an external hack.
In what could become a landmark test case for how courts treat user-owned crypto assets, the plaintiffs, led by advocate Romy Johnson, argue their digital holdings should be legally protected as client property held in trust, not company assets to be folded into corporate restructuring.
Legal Clash Over Ownership of Crypto Holdings
The heart of the legal dispute lies in Zettai’s move to lump all user balances, including Bitcoin, XRP, and fiat that were never affected by any hack, into a single restructuring pool alongside allegedly hacked tokens.
The plaintiffs claim this move is unlawful under Singaporean law, which only permits corporate debts to be restructured, not client assets held in trust. Johnson’s 40-page submission cites clear legal precedent, stating that user funds are not the company’s property and cannot be used to settle corporate liabilities.
🧵 THREAD: Why WazirX Users Are Fighting Back in Singapore Court
👇 A 25-part breakdown of Romy Johnson’s 40-page affidavit representing “Category A” users whose unhacked crypto assets remain unjustly frozen by Zettai Pte Ltd.https://t.co/BVHshdbhq9#WazirX #WazirXScam pic.twitter.com/fJkQKNTmQs
— TOOFAAN (@TOOFAANARMY) July 6, 2025
Inside Job Allegations Gain Steam
Adding weight to their claims, the plaintiffs have produced on-chain evidence showing that the supposedly hacked tokens were moved using internal multi-signature wallets, a process that requires multiple internal approvals.
To date, Zettai has provided no independent proof of an external hack. Users are now demanding an independent audit and full disclosure of the staff who approved the transactions, raising serious questions about the legitimacy of the company’s official narrative.
Court Previously Rejected Offshore Scheme
This isn’t the first legal obstacle for Zettai. Singapore’s High Court previously dismissed the exchange’s earlier restructuring plan after discovering it contained links to an undisclosed offshore shell company, further undermining user trust.
Johnson emphasized that even in insolvency cases, crypto assets held in trust cannot be seized to repay corporate debts. He argues that Zettai’s actions risk setting a dangerous precedent for user protections in the crypto space.
Next Steps: A Crucial Hearing for the Crypto Sector
While Zettai maintains that users will be reimbursed under its revised plan, many fear the proposal still fails to meet the legal bar for protecting client funds. The upcoming court hearing will determine whether the revised plan upholds the legal safeguards for trust-held digital assets.
Until then, thousands of WazirX users continue to seek restitution through the courts, hoping Singapore’s legal system will set a clear precedent that crypto holdings are client property, not a corporate asset to be bundled away.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments are volatile and risky. Always conduct your research before making any investment decisions.
