Singapore Court Rejects WazirX Moratorium Amid $234M Hack Fallout

The Singapore High Court has dismissed the moratorium application submitted by Zettai, the parent company of the cryptocurrency exchange WazirX. This application was intended to facilitate the restructuring of the firm and the redistribution of funds to users affected by a significant hack that occurred last year, resulting in a loss of $234 million. Concurrently, Zettai disclosed to the court that it had established a new entity in Panama in March and rebranded it as Zensui.

WazirX had previously obtained a four-month conditional moratorium from the Singapore High Court in September 2024. In response to the court's decision, WazirX announced its intention to appeal, stating that its primary objective remains to initiate distributions to users as soon as possible. The exchange is currently exploring all available legal options in consultation with its legal and advisory teams.

According to Sonu Jain, one of the legal representatives for WazirX users, the court's rejection of the moratorium application underscored the lack of transparency from the exchange. Zettai had not disclosed its relocation to Panama or its rebranding to Zensui to either the court or its users. This lack of transparency has raised concerns about the company's intentions and its commitment to its users.

Adding to the complexity, the Monetary Authority of Singapore issued a notice on 30 May, warning that all unlicensed exchanges operating in Singapore must cease their services by 30 June. Given that Zettai is no longer registered in Singapore or India, it may face significant challenges in implementing its restructuring plan. Furthermore, there is an ongoing ownership dispute between Zettai and Binance regarding WazirX, which could further complicate the situation.

With the moratorium set to expire on 6 June, the rejection of WazirX's application opens the door for Indian users to pursue litigation in India to recover their unhacked locked funds. According to Sonu, the process of recovering these funds could take years, leaving users in a state of uncertainty and financial distress.