Singapore Court Uncovers WazirX Deception, Invalidates User Vote

Singapore’s Supreme Court has uncovered a complex web of deception involving the cryptocurrency exchange WazirX, its partner Zettai, and a previously unknown entity, Zensui, based in Panama. The court's findings reveal that these companies misled users, violated key regulations, and concealed the true control of their operations.

This revelation comes in the wake of a significant $235 million hack that WazirX experienced last year, further complicating the situation for its users. The court's decision has exposed a pattern of regulatory non-compliance and deliberate misinformation, casting a shadow over the company's credibility and future operations.

The case took a pivotal turn when the court invalidated a recent user vote conducted by WazirX. Judge Tan ruled that the vote was invalid because users were not provided with full disclosure, preventing them from making an informed decision. The vote, which appeared to be a democratic process, was actually a carefully orchestrated act designed to mislead users and avoid accountability.

Judge Tan emphasized that without the court's intervention, thousands of users would have been deceived, allowing WazirX to escape responsibility for its actions. This ruling underscores the court's commitment to protecting users from corporate deception and ensuring transparency in financial operations.

The court also declared Zettai’s operations in Singapore illegal, as the company lacked the necessary Digital Token Service Provider (DTSP) license and had no intention of applying for one. Zettai’s legal team admitted in court that they never planned to obtain the required license, indicating a deliberate violation of local laws rather than mere oversight.

Adding to the controversy, it was revealed that the true control behind the operations was not Zettai but Zensui, a Panama-based entity. This information was deliberately concealed from users and regulators, further complicating the legal landscape. The court criticized the prolonged legal drama and delays as a waste of public resources, all aimed at maintaining a false narrative.

The court also highlighted WazirX’s failure to register with India’s Financial Intelligence Unit (FIU), exposing a pattern of regulatory avoidance in multiple countries. With the restructuring plan rejected, WazirX’s future remains uncertain. The company has announced plans to appeal the court's decision but has also begun shifting its operations to Panama under the Zensui brand. For millions of users, the prospect of recovering lost funds has become even more distant.