Singapore High Court has rejected the WazirX’s proposed restructuring plan following the $234.9 million hack in July 2024. On Wednesday, the court cited concerns over transparency from its parent company, Zettai Pte Ltd, which filed the petition.
The latest setback from the Singapore High Court has left WazirX, serving 4.4 million Indian users, struggling to sustain operations in the country it had chosen for faster judicial resolution following the July 2024 hack.
WazirX has now informed the Singapore Court that it plans to relocate its base to Panama under a new company named ‘Zensui’.
According to multiple petitioners and sources who attended the online hearing, Judicial Commissioner Kristy Tan dismissed the restructuring petition filed by Zettai Pte Ltd, which sought approval to compensate creditors (users) for 85% of their frozen funds, as claimed by WazirX.
While the judge’s decision was delivered orally, a full written order is expected within 3-4 days.
WazirX to relocate to Panama under new name ‘Zensui’ amid legal setback
According to Chartered Accountant Sonu Jain, one of the petitioners against WazirX, the Singapore High Court had scheduled June 4 to deliver its verdict on the exchange’s restructuring petition, given the approaching moratorium deadline of June 6.
Jain noted that the decision came shortly after the Singapore government issued a new directive requiring companies offering crypto services to foreign clients to register themselves formally.
Jain further reported that Judge Tan questioned WazirX’s counsel on whether Zettai had applied for a license to operate in Singapore. In response, the counsel stated that they had no intention of obtaining such a license and instead planned to relocate to Panama, where a company had already been registered on March 10.
The judge expressed displeasure over the fact that WazirX had kept the court uninformed of this development for months, only disclosing it when directly questioned. According to Jain, Judge Tan also remarked that she doubted the management’s willingness to return users’ funds.
Meanwhile, on June 5, WazirX emailed its users redacted court documents announcing its rebranding as Zensui and a change in its legal identity.
Many WazirX users expressed satisfaction with the court’s verdict, criticizing the exchange management’s handling of the hack crisis over the past 10 months. Numerous users had petitioned India’s high courts and Supreme Court, demanding urgent intervention in restructuring, accusing the management of arbitrary decisions. However, these requests were denied as there was no regulatory framework for crypto in India.
Victims hail verdict as a moral win, call for urgent crypto regulation in India
This latest ruling of the Singapore Court is a legal victory and a moral reckoning, says Romy Johnson, WazirX hack victim and crusader for crypto justice and regulations in India.
The victim described it as a monumental win for every Indian who was cheated, defrauded, and looted by these so-called crypto custodians.
Johnson stressed that India has to take note—while courts in other countries deliver justice, the regulatory black hole in the country allows fraud to occur. The advocate added that if there is any test for regulation of cryptocurrency in India, it is not tomorrow but today, and justice should not be outsourced but delivered at home.
WazirX issued an official statement on Wednesday evening in response to the Singapore Court’s verdict, asserting that its primary objective is initiating user fund distribution as soon as possible.
WazirX said it respects but does not agree with the Singapore High Court’s denial of its proposed restructuring plan, calling the outcome surprising to the exchange.
The company affirmed that it aims to meet all legal and regulatory obligations, adding that releasing user funds is the priority. WazirX has also mentioned that they are consulting with all the appropriate advisories about the legal options against the court’s decision and are planning to contest it further.
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