The Indian – facing crypto exchange WazirX is relocating its operations to Panama after the Singapore High Court rejected its restructuring proposal. Here’s a detailed account:
The Background of the Restructuring Failure: In July 2024, WazirX suffered a $230 – million hack. Afterwards, it proposed a restructuring plan to relaunch operations, but the Singapore High Court rejected this plan, effectively ending its attempt to resume operations last month.
The Reasons for Relocation: Besides the court – blocked restructuring, Singapore’s updated regulations also play a part. The city – state prohibits unlicensed firms from offering crypto services outside the country by June 30. WazirX decided to relocate instead of obtaining the required licensing.
The Relocation Plan: WazirX’s parent company, Zettai, has incorporated a new entity, Zen Sui Corporation, in Panama. It is preparing to transfer all cryptocurrency – related operations to the new offshore structure. The transfer of services to Zen Sui is expected to be completed within two to three business days of execution.
Obligations to Users: Under the new structure, Zen Sui will be responsible for issuing WazirX’s recovery tokens. These tokens serve as on – chain IOU’s to help compensate users affected by the 2022 hack. They reflect the remaining claims not covered by the initial payout and will be tied to WazirX’s future profits and asset recoveries.
Future Regulatory Compliance: The company has no intention of seeking a license in Singapore or registering with India’s financial intelligence unit, even though it will continue to serve Indian customers through its new Panama – based platform.
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