WazirX’s Restructuring Proposal Rejected by Singapore High Court

TLDR

• WazirX’s restructuring proposal was rejected due to lack of transparency.
• 4.4 million users have been locked out of $250 million in funds.
• WazirX plans to appeal the court’s decision on fund distributions.

The Singapore High Court has rejected WazirX’s restructuring proposal, leading the cryptocurrency exchange to move its base to Panama and rebrand itself as Zensui. This shift follows a hack in July 2024, which led to a suspension of trading and locking of user funds worth about $250 million for nearly ten months.

The hack had severe consequences for WazirX and its users. After the incident, WazirX’s parent company, Zettai Pte Ltd, filed a restructuring petition in Singapore. However, the court, citing a “lack of transparency,” dismissed the proposal, leaving the company to take alternative measures.

WazirX’s Panama Relocation and Rebranding as Zensui

According to court documents, Zettai secretly established a new company in Panama as early as March 2025, rebranding it as Zensui without informing either the court or its users. This move is seen as a strategic effort to avoid Singapore’s regulatory constraints, which were becoming increasingly stringent against unlicensed crypto firms.

Judicial Commissioner Kristy Tan, who handled the case, cited multiple reasons for rejecting the restructuring plan, primarily the lack of transparency from WazirX regarding their operations. Meanwhile, WazirX founder Nischal Shetty has not made any public statements regarding these developments.

Court Decision and User Impact

The High Court dismissed Zettai’s moratorium application, which aimed to approve a restructuring scheme that would compensate users for 85% of their locked funds. The decision has added to the frustration of WazirX’s 4.4 million users, particularly those based in India, who have not had access to their assets since the hack.

In response to the ruling, WazirX has stated plans to file an appeal. A statement on the platform formerly known as Twitter emphasized their focus on beginning fund distributions as soon as possible. The company is currently consulting with legal teams to evaluate all available options to challenge the court’s decision.

Monetary Authority of Singapore’s Notice

The Monetary Authority of Singapore had issued a notice on May 30, 2025, warning unlicensed exchanges to halt operations by June 30, 2025. This regulatory pressure is one of the factors believed to have influenced WazirX’s decision to relocate and rebrand.

The legal and regulatory hurdles continue for WazirX, compounded by an unresolved ownership dispute between Zettai and Binance. Despite these challenges, there have been no reports detailing the affected cryptocurrencies or the current status of those assets, making it difficult to gauge the full impact on the exchange’s operations.