WazirX Relocates to Panama After Singapore Court Rejects Restructuring Plan
WazirX, the embattled Indian crypto exchange, is relocating its operations from Singapore to Panama following a Singapore High Court decision to decline its restructuring plan. This move comes after the court's refusal to approve a scheme aimed at repaying creditors, further delaying anticipated payouts and prompting the exchange's parent company, Zettai, to rebrand as Zensui Corporation.
WazirX's Restructuring Plan Rejected
The Singapore High Court recently rejected WazirX's proposed restructuring plan, which was initially approved in January. This decision has significantly delayed creditor repayments, which were expected to begin as early as April 2025. The plan included:
- Launching a decentralized exchange (DEX)
- Issuing recovery tokens
- Implementing periodic buybacks to support liquidity
Key Takeaways
- The Singapore High Court's decision to decline WazirX's restructuring plan has created uncertainty for creditors.
- WazirX's parent company, Zettai, is moving operations to Panama and rebranding as Zensui Corporation.
- The move to Panama is partly influenced by Singapore's deadline for crypto service providers to cease offering digital token services to overseas markets.
- Zensui Corporation will be responsible for issuing WazirX recovery tokens as part of the post-hack compensation scheme.
The Move to Panama and Rebranding
In response to the court's decision and Singapore's regulatory environment, WazirX's parent company, Zettai, has initiated a move to Panama. The company will rebrand as Zensui Corporation, which was incorporated in Panama on March 10. The transfer of cryptocurrency-related services to Zensui is expected to be finalized within two to three business days of the agreement's execution. This strategic relocation aims to provide a fresh start for the exchange, which has faced criticism for slow communication and limited asset recovery efforts following a $230 million hack linked to North Korea's Lazarus Group.
Creditor Repayments and Recovery Tokens
Despite the setbacks, WazirX remains committed to repaying its creditors. The new entity, Zensui Corporation, will be responsible for issuing recovery tokens. These tokens are designed as on-chain IOUs for creditors, representing outstanding balances not covered by initial distributions. Holders of these tokens are expected to receive additional distributions periodically, funded by WazirX's profits and recovered assets. Over 90% of WazirX's voting creditors had previously approved the post-hack restructuring plan, anticipating 75% to 80% of their account balances to be recovered.