India-facing cryptocurrency exchange WazirX is shifting its operations to Panama after a Singapore court refused to approve its restructuring proposal. The move signals a new chapter for the embattled exchange, which has been reeling from a $235 million cyberattack.
From Singapore to Panama: A Strategic Shift
In an email to users, WazirX disclosed redacted legal documents confirming the transition. One such document revealed that its parent company, Zettai, has established a new entity—Zensui Corporation—in Panama and is preparing to transfer all crypto-related services to this new subsidiary.
According to the filing, “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.”
This relocation follows a directive from Singapore’s central bank requiring crypto service providers to halt overseas digital token services by June 30. On June 4, WazirX confirmed via X (formerly Twitter) that the Singapore High Court had declined to endorse its restructuring plan.
Jalaj Jain, a former lawyer and founder of JALAJ719 Consultants, told Cointelegraph there may be additional legal implications in India, though it’s too early to say for sure without clearer regulatory input.
New Beginnings Under Zensui
Zensui Corporation was officially registered in Panama on March 10. WazirX has already finalized the agreement to transfer Zettai’s operations to Zensui, and the handover is expected to be completed within two to three business days of execution.
Zensui will also take charge of issuing the exchange’s recovery tokens, which play a key role in WazirX’s post-hack repayment strategy. These on-chain IOUs are designed to compensate users whose funds were lost during the cyberattack.
WazirX noted that it does not plan to apply for a license to operate in Singapore or register with India’s Financial Intelligence Unit, even though its customer base remains largely Indian.
Recovery Tokens Aim to Repay Lost Funds
WazirX’s recovery tokens represent the portion of user claims not covered by the initial payout. These tokens function like a digital promissory note, tracking users’ remaining balances. Over time, token holders are expected to receive distributions funded by future profits and recovered assets.
The recovery plan received overwhelming support in April, with more than 90% of voting creditors approving the proposal. WazirX has committed to compensating affected users with tokens that could cover 75% to 80% of their original account balances at the time of the breach.
