WazirX exits Singapore, rebrands as Zensui, as court rejects restructuring plan after $235-million hack

The Singapore High Court has rejected WazirX's proposed restructuring plan under Zettai, which aimed to distribute up to 85% of stolen funds via recovery tokens, calling the plan "insufficiently transparent". Zettai-owned WazirX, which disbanded operations on July 18, 2024, says the outcome was not what the company anticipated, but it remains committed to complying with all legal and regulatory processes.

"Our primary focus remains to begin distributions as soon as possible. Towards this goal, we are currently evaluating all available legal options in consultation with our legal and advisory teams, and are considering an appeal against the decision of the Singapore High Court," the company stated.

Nishchal Shetty-led WazirX says the court decision does not impact the NLPA (user-owned) assets, which remain "safe."

Amid this development, the Singapore-based crypto exchange, which primarily serves customers in India, is also moving its operations to Panama. In a redacted legal document outlining the company's move, WazirX's parent stated it will move to Panama and rebrand itself as Zensui Corporation.

"Zettai has taken steps to incorporate a subsidiary, Zensui Corporation ("Zensui") in the Republic of Panama, and has been preparing for the transfer of the operations of the Platform’s cryptocurrency-related services to Zensui, if necessitated by changes in the regulatory landscape," the document shows.

The document reveals that Zensui was incorporated in the Republic of Panama on March 10, 2025. "The agreement for the transfer of operations of the platform’s cryptocurrency-related services (the "Transfer Agreement") is finalised and is ready for execution."

The company says once the transfer agreement is executed, it is expected that 2-3 business days will be required for the operations of the platform’s cryptocurrency-related services to be handed over from Zettai to Zensui.

Reacting to the development, CoinDCX co-founder Sumit Gupta said via a LinkedIn post that what's happening with WazirX is "unfortunate". "It highlights why India urgently needs crypto regulations that protect users and raise the bar for crypto businesses in India."

Singapore's licensing regime under the FSM Act applies solely to “Singapore corporations,” which states that a Singapore corporation must not carry on a business, whether from Singapore or elsewhere, of providing any type of digital token service outside Singapore unless the corporation has a licence.

Adding to the woes of WazirX and other companies operating in Singapore but offering services in their respective countries, the Singapore’s central bank has issued a deadline of June 30 for such companies to stop issuing digital currencies without a licence from the Monetary Authority of Singapore ("MAS") granted under s 138 of the FSM Act (the “DTSP Licence"). This means starting June 30, 2025, WazirX (via Zettai Pte Ltd) cannot operate in Singapore without a digital token service provider (DTSP) license.

This setback comes after a Singapore court had approved WazirX's restructuring plan to repay victims of a $235-million hack, reportedly committed by the North Korea-based Lazarus Group. In April, over 90% of WazirX's voting creditors had approved the crypto exchange's post-hack restructuring plan. WazirX's creditors had earlier stated that if the restructuring scheme was not approved, it could take years, with a tentative deadline of 2030, to recover funds due to unclear and extended timelines.

WazirX suffered a massive cyberattack in July 2024, resulting in the theft of around $230 million in digital assets. Hackers exploited vulnerabilities in the multisig wallet, resulting in the suspension of its operations and the halt of trading and withdrawals in the same month.