WazirX is abandoning Singapore. The India-focused crypto exchange heads to Panama. This sudden move follows a Singapore High Court ruling. On June 4th, Judicial Commissioner Kristy Tan rejected WazirX’s restructuring plan. The court cited severe transparency failures. Significantly, WazirX hid plans to relocate and rebrand. WazirX’s counsel admitted the undisclosed Panama strategy mid-hearing. This shocked the court. Therefore, the judge questioned management’s commitment to users.
Simultaneously, Singapore’s central bank tightened rules. The Monetary Authority of Singapore (MAS) issued a directive. Unlicensed crypto firms must stop overseas services by June 30th. WazirX faced this deadline without court approval. The exchange saw no path forward in Singapore.
Panama Rebrand
WazirX’s parent company, Zettai Pte Ltd., already prepared its exit. It quietly incorporated Zensui Corporation in Panama on March 10th. The transfer agreement is finalised. Operations will shift within days of execution. Users received an email explaining this move. Attached redacted legal documents confirmed the Panama plan. Zettai itself rebrands as Zensui.
Zensui will manage WazirX’s crypto services from Panama. Following this, the company rejects seeking Singapore licenses. It also won’t register with India’s Financial Intelligence Unit. Panama’s friendlier crypto rules likely influenced this choice. The exchange seeks smoother operations despite serving Indians. WazirX promises a “fresh start” under Zensui.
Recovery Tokens: Hope for Hack Victims?
WazirX faces immense pressure from a devastating hack. North Korea’s Lazarus Group stole $235 million last July. This represented nearly half of its crypto holdings. Therefore, the exchange proposed repaying creditors. Its plan involved minting special “recovery tokens.” These tokens act like on-chain IOUs for creditors. They represent outstanding claims from the hack.
Over 90% of voting creditors supported the plan in April. WazirX promised tokens might yield 75-80% of lost value. Zensui will now issue these recovery tokens. Holders expect periodic payments. Future distributions rely on WazirX profits and recovered assets. However, the court rejection delays this compensation. Victims must wait longer for potential recovery.
Uncertain Future
The Singapore ruling and Panama move sparked outrage. Because of this, the crypto community reacted fiercely online. Influencer RK Gupta called it a “cover-up.” User @Abhi_Tenet labelled WazirX a “scammer.” Panama, they noted, is a “heaven for shell companies.” Some users accused WazirX of deceiving the court. Conversely, hack victim Romy Johnson praised the ruling. They saw it as a “moral reckoning.”
WazirX expressed disappointment but pledged compliance. It prioritises distributing user funds. The company consults legal teams about an appeal. Meanwhile, liquidation remains a risk under Singapore law. That scenario could slash user recoveries further. Legal expert Jalaj Jain warns of potential India repercussions. “It’s premature for conclusions,” he said. Indian regulators haven’t clarified their stance yet. Trust in WazirX faces its biggest test.
Written By Fazal Ul Vahab C H
