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.<\/p>\n\n\n\n
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\u2014Zensui Corporation\u2014in Panama and is preparing to transfer all crypto-related services to this new subsidiary.<\/p>\n\n\n\n
According to the filing, \u201cZettai has taken steps to incorporate a subsidiary, Zensui Corporation [\u2026] in the Republic of Panama, and has been preparing for the transfer of the operations of the Platform\u2019s cryptocurrency-related services to Zensui.\u201d<\/p>\n\n\n\n
This relocation follows a directive from Singapore\u2019s 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.<\/p>\n\n\n\n
Jalaj Jain, a former lawyer and founder of JALAJ719 Consultants, told Cointelegraph there may be additional legal implications in India, though it\u2019s too early to say for sure without clearer regulatory input.<\/p>\n\n\n\n
Zensui Corporation was officially registered in Panama on March 10. WazirX has already finalized the agreement to transfer Zettai\u2019s operations to Zensui, and the handover is expected to be completed within two to three business days of execution.<\/p>\n\n\n\n
Zensui will also take charge of issuing the exchange\u2019s recovery tokens, which play a key role in WazirX\u2019s post-hack repayment strategy. These on-chain IOUs are designed to compensate users whose funds were lost during the cyberattack.<\/p>\n\n\n\n
WazirX noted that it does not plan to apply for a license to operate in Singapore or register with India\u2019s Financial Intelligence Unit, even though its customer base remains largely Indian.<\/p>\n\n\n\n
WazirX\u2019s recovery tokens represent the portion of user claims not covered by the initial payout. These tokens function like a digital promissory note, tracking users\u2019 remaining balances. Over time, token holders are expected to receive distributions funded by future profits and recovered assets.<\/p>\n\n\n\n
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.<\/p>\n","protected":false},"excerpt":{"rendered":"
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 […]<\/p>\n","protected":false},"author":6,"featured_media":14667,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[30,2,43],"tags":[],"class_list":{"0":"post-14665","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-exchange","8":"category-featured","9":"category-general-news"},"acf":[],"yoast_head":"\n