Crypto exchange WazirX has hit a roadblock in its efforts to recover from a $230 million hack that occurred in July 2024. The Singapore High Court rejected the exchange’s restructuring proposal, which aimed to relaunch operations and distribute recovered assets to creditors. Despite receiving support from over 93% of creditors, the court’s decision has put a halt to WazirX’s immediate plans.
In a statement, WazirX expressed its disappointment at the court’s ruling but affirmed its commitment to complying with legal and regulatory processes. The exchange is now considering other legal avenues, including a potential appeal, to move forward. It clarified that the court’s decision does not impact its Net Liquid Platform Assets (NLPA), which have been stabilized post-attack.
This setback comes at a time when WazirX is undergoing a significant corporate shift, relocating its operations from Singapore to Panama. The move follows Singapore’s updated regulations that require licensed firms to offer crypto services exclusively within the country. Instead of obtaining the necessary licensing, WazirX has opted to move its headquarters to Panama and rebrand as Zensui under its parent company, Zettai.
However, the decision to relocate to Panama has been met with criticism from some within the crypto community. Influencer RK Gupta has accused WazirX of attempting to evade regulatory scrutiny by rebranding and relocating to a tax haven. He emphasized the importance of accountability in the crypto industry and suggested that the exchange’s actions are a form of escape rather than a genuine fresh start.
Despite these challenges, WazirX remains determined to overcome its obstacles and continue serving its user base. The exchange has a history of resilience and has vowed to emerge stronger from this latest setback. Updates on the situation are expected to follow in the coming weeks as WazirX navigates its legal and operational challenges.
As WazirX faces a pivotal moment in its journey, the crypto community will be watching closely to see how the exchange adapts to these changes and moves forward in a rapidly evolving regulatory landscape.