Singapore Court Rejects WazirX Restructuring as Exchange Sets Up New Entity in Panama

The Singapore High Court has rejected the moratorium application filed by Zettai, the parent company of crypto exchange WazirX, which sought to restructure the firm and redistribute funds to users affected by last year’s $234 million hack. Zettai also revealed to the court that in March it had opened a new firm in Panama and rebranded as Zensui.

WazirX had secured a four-month conditional moratorium from the Singapore High Court in September 2024.

In a statement, WazirX revealed to users that they plan to appeal the decision of the Singapore High Court. WazirX posted on X, “Our primary focus remains to begin distributions as soon as possible. Towards this goal, we are currently evaluating all available legal options in consultation with our legal and advisory teams and will be appealing against the decision of the Singapore High Court.”

The Honourable Singapore High Court issued an order declining to approve our proposed restructuring plan. While this outcome was not what we anticipated, we respect the Court’s decision and remain fully committed to complying with all legal and regulatory processes.

Our primary… pic.twitter.com/jrXFFwnMBA

According to Sonu Jain, one of the petitioners in the case representing WazirX users, the court’s dismissal of the exchange’s moratorium application highlighted the lack of transparency from the exchange’s side. The exchange’s parent firm had not revealed to the court or to its users about its move to Panama and rebranding to Zensui.

The Monetary Authority of Singapore on 30 May issued a notice warning that all unlicensed exchanges operating in Singapore need to stop their services before 30 June. Given that Zettai, the parent company of WazirX, is no longer registered in Singapore or India, it may face complications in its restructuring scheme. To complicate matters further, there is an ownership conflict of WazirX between Zettai and Binance as well.

The crypto exchange had secured a four-month conditional moratorium from the Singapore High Court, which essentially protected the company from litigation in different regions. The moratorium ends on 6 June. Now that the court has rejected the exchange’s application, it opens the door for Indian WazirX users to file litigation in India to seek unhacked locked funds from the exchange. According to Sonu, WazirX users may have to wait years to get their funds back.

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