WazirX exits Singapore, moves to Panama after court ruling

India-serving but Singapore-based crypto exchange WazirX is moving its operations to Panama after local courts declined to approve the firm’s restructuring plan.

In an email sent to its users, WazirX shared recent redacted legal documents outlining the move. One of the documents revealed that WazirX’s parent company, Zettai, will move to Panama and rebrand.

“Zettai has taken steps to incorporate a subsidiary, Zensui Corporation […] in the Republic of Panama, and has been preparing for the transfer of the operations of the Platform’s cryptocurrency-related services to Zensui,“ the document states.

Screenshot of WazirX's email to its users. Source: Shared by a WazirX user

This follows Singapore’s central bank setting a deadline of June 30 for local crypto service providers to stop offering digital token (DT) services to overseas markets.

In an X post on June 4, WazirX said a Singapore court declined to approve its restructuring plan.

Related: Binance, WazirX among crypto firms evading taxes in India, says gov’t

Source: WazirXIndia

Jalaj Jain, the founder of JALAJ719 Consultants and a lawyer who transitioned to consulting, told Cointelegraph that there may also be legal repercussions internal to WazirX’s India-based operations. “However, it would be premature to draw definitive conclusions in the absence of clear guidance from Indian regulators or directly affected stakeholders,“ he added.

WazirX eyes fresh start with Zensui

Zensui was incorporated in Panama on March 10, and the agreement for the transfer of Zettai’s operation to the company is already finalized and ready for execution, according to the company.

Once executed, the platform’s cryptocurrency services are expected to be transferred within two to three business days.

Zensui will also be responsible for issuing WazirX recovery tokens, which are tied to the company’s post-hack compensation scheme.

The company also stated that it does not intend to apply for a license to continue operating in Singapore. The firm confirmed it does not plan to apply for a license in Singapore or register with India’s Financial Intelligence Unit despite serving Indian customers.

Related: Binance denies blame in $230M WazirX hack, urges user repayments

The upcoming recovery tokens

WazirX’s recovery token is almost like an onchain IOU that the exchange plans to mint for every creditor of the exchange. The court filings follow a Singapore court’s approval of WazirX’s plan to repay the victims of its $235 million hack, which has been linked to North Korea’s state-sponsored hackers.

Recovery tokens represent the remaining claims that were not covered by the initial distribution and track a user’s outstanding balance. Holders are expected to periodically receive additional distributions funded by WazirX profits and recovered assets.

More than 90% of the voting creditors of the Indian crypto exchange WazirX voted in favor of the platform’s post-hack restructuring plan in April. WazirX promised that those tokens could yield 75% to 80% of the value of users’ account balances at the time of the hack.

Magazine: WazirX hackers prepped 8 days before attack, swindlers fake fiat for USDT: Asia Express