Crypto exchange WazirX suffered a major legal blow after the Singapore High Court rejected its restructuring proposal to relaunch operations following a $230 million hack in July 2024.

On June 4, WazirX announced that its request for court approval had been denied, saying:

“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.”

The proposed plan sought to distribute recovered assets and restore trading activities within ten business days of the court’s endorsement. Although more than 93% of creditors had voted to support the plan, the court’s rejection has halted immediate progress.

In response, WazirX stated that it remains committed to fulfilling all legal obligations and will explore other legal routes, including a potential appeal. The exchange also clarified that the ruling does not affect its Net Liquid Platform Assets (NLPA), which have already been stabilized post-attack.

It added:

“WazirX has faced challenges before, and each time, we’ve come back stronger. More updates will follow in due course.”

The court’s decision effectively ended WazirX’s plan to resume operations last month, a timeline it had previously announced contingent on legal approval.

WazirX shifts base to Panama

The legal setback comes amid a broader, controversial shift in WazirX’s corporate strategy.

The exchange, which primarily served the Indian market but was headquartered in Singapore, is relocating to Panama. Its parent company, Zettai, will rebrand as Zensui and continue operations from the Central American nation.

According to crypto analyst Sonu Jain, this decision follows Singapore’s updated regulations prohibiting unlicensed firms from offering crypto services outside the country. Jain suggested that WazirX chose to relocate rather than obtain the required licensing.

Meanwhile, the move has drawn criticism within the crypto community, with influencer RK Gupta accusing 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.”

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