Exclusive: Rejected by Singapore Court, WazirX Shifts Base to Panama

Almost a year after WazirX exchange was hacked for $234.9 million (Rs 2000 crore) in cryptocurrencies, the Singapore Court on Wednesday rejected the exchange management’s proposal for a restructuring scheme, citing “lack of transparency” from its parent entity Zettai Pte Ltd that represented the petition.

WazirX Moves to Panama

The latest blow by Singapore High Court has left WazirX, a cryptocurrency exchange catering to 4.4 million Indian users, struggling to survive in a country it had chosen to shift to vis-a-vis Zettai, for a swifter judicial process, post the July 2024 hack. WazirX has now claimed to the Singapore Court that they are shifting base to Panama under a new company name ‘Zensui’.

According to several petitioners who attended the online hearing live on Wednesday, judicial commissioner Kristy Tan dismissed the petition filed by Zettai Pte Ltd that sought approval for a restructuring scheme, where their creditors (users) would have been compensated for 85% of their locked funds, as claimed by WazirX.

While Tan’s directives were made orally in the court, a full written order is expected to be published in the next 3-4 days.

Speaking to Coingape, Chartered Accountant Sonu Jain, who was one of the many petitioners against WazirX said, “The honourable Singapore Court had set the date of June 4 for verdict in the WazirX restructuring petition as their moratorium deadline of June 6 was approaching. However, recently, the Singapore government had passed an order making it mandatory for companies catering crypto services to foreign clients to register themselves.”

“In that regard, judge Kristy Tan questioned WazirX’s counsel whether they had sought for a license for Zettai to function in Singapore. To that they replied that they are not interested in license and are planning to move to Panama and had already registered a company over there on March 10. The judge was upset over the fact that WazirX kept the court in dark for months and chose to reply only when asked about. Judge Tan then remarked that she doesn’t think the management is interested in returning users’ money,” added Jain.

Meanwhile, WazirX sent an email to its users on June 5, sharing redacted court documents, that informed that WazirX is rebranding itself as Zensui and changing its legal identity.

Several WazirX users shared satisfaction over the court’s verdict, primarily complaining about the way the exchange management had handled the hack crisis in the past 10 months. Several users of the exchange had approached high courts and the Supreme Court of India, demanding an immediate intervention in the restructuring process, alleging that the management had taken arbitrary decisions. The petitions were however, dismissed by the courts, pointing towards a lack of regulatory structure for crypto in India.

Hack Victims Still Waiting for Refunds

“The Singapore Court’s dismissal of Zettai’s bogus application is not just a legal victory but a moral reckoning as well. This is a monumental win for every Indian who was mislead, manipulated and robbed by these so-called crypto custodians. India must take note- while foreign courts deliver justice, our own regulatory vacuum enables fraud. The time to regulate cryptocurrencies in India is not tomorrow but today. Justice must not be outsourced, it must be delivered at home,” said Romy Johnson, a WazirX hack victim and advocate for crypto justice and regulations in India.

WazirX later released a detailed statement on the court verdict on Wednesday evening, claiming that their intent is to begin funds distribution as soon as possible.

“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 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,” said WazirX in an official statement.