Crypto trade WazirX suffered a serious authorized blow after the Singapore Excessive Court docket rejected its restructuring proposal to relaunch operations following a $230 million hack in July 2024.
On June 4, WazirX introduced that its request for court docket approval had been denied, saying:
“The Honourable Singapore Excessive Court docket issued an order declining to approve our proposed restructuring plan. Whereas this end result was not what we anticipated, we respect the Court docket’s resolution and stay totally dedicated to complying with all authorized and regulatory processes.”
The proposed plan sought to distribute recovered property and restore buying and selling actions inside ten enterprise days of the court docket’s endorsement. Though greater than 93% of collectors had voted to help the plan, the court docket’s rejection has halted rapid progress.
In response, WazirX acknowledged that it stays dedicated to fulfilling all authorized obligations and can discover different authorized routes, together with a possible enchantment. The trade additionally clarified that the ruling doesn’t have an effect on its Internet Liquid Platform Property (NLPA), which have already been stabilized post-attack.
It added:
“WazirX has confronted challenges earlier than, and every time, we’ve come again stronger. Extra updates will observe in the end.”
The court docket’s resolution successfully ended WazirX’s plan to renew operations final month, a timeline it had beforehand introduced contingent on authorized approval.
WazirX shifts base to Panama
The authorized setback comes amid a broader, controversial shift in WazirX’s company technique.
The trade, which primarily served the Indian market however was headquartered in Singapore, is relocating to Panama. Its guardian firm, Zettai, will rebrand as Zensui and proceed operations from the Central American nation.
In response to crypto analyst Sonu Jain, this resolution follows Singapore’s up to date laws prohibiting unlicensed corporations from providing crypto companies exterior the nation. Jain advised that WazirX selected to relocate slightly than acquire the required licensing.
In the meantime, the transfer has drawn criticism throughout the crypto neighborhood, with influencer RK Gupta accusing the corporate of utilizing the rebrand to flee regulatory scrutiny. He acknowledged:
“This isn’t a recent begin, it’s a cover-up. An organization below hearth doesn’t get to only rename itself and stroll away. Crypto doesn’t want cowards hiding in tax havens. It wants accountability.”
