The recent development in the WazirX case has taken an unexpected turn as the Singapore High Court has rejected the moratorium application filed by Zettai, the parent company of the crypto exchange. This application was aimed at restructuring the firm and redistributing funds to users affected by last year’s $234 million hack. It was also revealed that Zettai had opened a new firm in Panama and rebranded as Zensui, a move that was not disclosed to the court or users.
WazirX had previously secured a four-month conditional moratorium from the Singapore High Court in September 2024. However, in a statement to users, the exchange announced plans to appeal the court’s decision. The focus remains on beginning distributions as soon as possible, and legal options are being evaluated with the help of legal and advisory teams.
The Singapore High Court’s decision highlighted the lack of transparency from WazirX’s side, according to Sonu Jain, representing WazirX users in the case. The exchange’s parent firm had not disclosed its move to Panama and rebranding to Zensui, raising concerns about its operations.
With the Monetary Authority of Singapore issuing a notice warning unlicensed exchanges to cease operations by 30 June, Zettai may face complications in its restructuring scheme as it is no longer registered in Singapore or India. Additionally, there is an ownership conflict between Zettai and Binance regarding WazirX.
The rejection of the moratorium application now opens the door for Indian WazirX users to file litigations in India to recover funds locked in the exchange. It is suggested that users may have to wait years to retrieve their funds, adding further uncertainty to the situation.
As the legal battle continues, the fate of WazirX and its users remains uncertain. The developments in Singapore and India will play a crucial role in determining the future of the exchange and the funds of affected users. Stay tuned for more updates on this evolving story.