WazirX Faces Legal Setback Court Rejects Restructuring Plan

Crypto exchange WazirX faced a significant legal hurdle when the Singapore High Court rejected its restructuring proposal, which aimed to resume operations following a $230 million hack in July 2024. On June 4, WazirX announced that the court had declined to approve its proposed restructuring plan. The exchange expressed respect for the court's decision while emphasizing its commitment to complying with all legal and regulatory processes.

The proposed plan sought to distribute recovered assets and restore trading activities within ten business days of the court’s endorsement. Despite more than 93% of creditors voting in support, the court’s rejection halted immediate progress. WazirX stated that it would explore other legal routes, including a potential appeal, and clarified that the ruling does not affect its Net Liquid Platform Assets (NLPA), which have already been stabilized post-attack.

WazirX remains committed to fulfilling all legal obligations and will continue to seek ways to resume operations. The exchange has faced challenges before and has always returned stronger, according to its statement. The court’s decision effectively ended WazirX’s plan to resume operations last month, a timeline it had previously announced contingent on legal approval.

Amidst this legal setback, WazirX is relocating its base to Panama. The exchange, which primarily served the Indian market but was headquartered in Singapore, is shifting its operations to the Central American nation. Its parent company, Zettai, will rebrand as Zensui and continue operations from Panama. This decision follows Singapore’s updated regulations prohibiting unlicensed firms from offering crypto services outside the country. According to crypto analyst Sonu Jain, WazirX chose to relocate rather than obtain the required licensing.

The move has drawn criticism within the crypto community. Influencer RK Gupta accused the company of using the rebrand to escape regulatory scrutiny. He stated, “This isn’t a fresh start, it’s a cover-up. A company under fire doesn’t get to just rename itself and walk away. Crypto doesn’t need cowards hiding in tax havens. It needs accountability.”