tl;dr
Crypto exchange WazirX faced a major legal setback when the Singapore High Court rejected its restructuring plan to resume operations after a $230 million hack in July 2024. Despite over 93% creditor support, the court's refusal halted the plan, forcing WazirX to consider appeals and other legal opt...
Singapore's High Court has rejected WazirX's restructuring plan aimed at recovering from a $230 million hack, effectively halting the exchange's planned relaunch.
Despite receiving over 93% creditor support, the court's decision forces WazirX to explore other legal avenues, including a potential appeal, to resume operations.
In response to regulatory challenges, WazirX is relocating its headquarters from Singapore to Panama and plans to rebrand its parent company, Zettai, as Zensui to continue business activities.
This relocation has sparked controversy within the crypto community, with some viewing it as an attempt to evade licensing requirements and regulatory oversight rather than comply with them.
The legal blow came following the July 2024 hack, where WazirX had sought court approval for a plan to distribute recovered assets and restore trading within ten business days. Though the plan had strong creditor backing, the court's refusal has stalled this progress.
WazirX affirmed its commitment to legal compliance and indicated it will pursue alternative legal solutions. The ruling leaves the exchange’s Net Liquid Platform Assets stable but delays its comeback.
This court decision coincides with WazirX’s strategic move to Panama, motivated by Singapore's stricter regulations banning unlicensed crypto service providers from operating abroad. Analysts suggest the relocation sidesteps licensing obligations.
The crypto community's response includes criticism from influencers who accuse WazirX of seeking cover through rebranding and relocation, stressing the need for greater accountability rather than avoidance via tax havens.