WazirX Relocates to Panama Following Singapore Court Rejection

India-facing crypto exchange WazirX is relocating its operations to Panama, a move that follows a Singapore court's rejection of the company's proposed restructuring plan. This information was conveyed to users via shared documents.

In an email to its customers, WazirX stated that its parent company, Zettai, has incorporated a new entity named Zensui Corporation in Panama. The company is preparing to transfer all cryptocurrency-related operations to this new offshore structure. Legal documents attached to the email confirmed, "Zettai has taken steps to incorporate a subsidiary, Zensui Corporation […] in the Republic of Panama." The transfer of services to Zensui is expected to be completed within two to three business days of execution.

This relocation comes as Singapore's central bank has imposed a June 30 deadline for crypto service providers to cease offering digital token services to foreign markets, a policy that has prompted multiple firms to re-evaluate their local presence. The move also follows months of scrutiny for WazirX in India, where the company faced tax-related investigations. The exchange experienced a $230 million hack in July 2024, after attackers breached its multi-signature wallet. Investigators have linked the exploit to North Korea's Lazarus Group, which was also implicated in the $1.4 billion Bybit attack. Much of the stolen crypto has reportedly been funneled through mixers, a tactic often associated with Lazarus.

Under the new structure, Zensui will also be responsible for issuing WazirX's recovery tokens. These tokens are intended to serve as on-chain IOUs to help compensate users impacted by the 2022 hack, reflecting remaining claims not covered by the initial payout, and will be tied to WazirX's future profits and asset recoveries. WazirX does not intend to seek a license in Singapore or register with India's Financial Intelligence Unit, despite plans to continue serving Indian customers through its new Panama-based platform.

WazirX's restructuring plan had previously garnered significant support, with over 90% of voting creditors backing the proposal in April. The proposed scheme is designed to distribute assets in the form of tokens, covering 85% of user balances as of July 18, 2024, at 1 PM IST, which was the date of the breach. WazirX CEO Nischal Shetty described the outcome as a turning point, emphasizing the team's priority on fund recovery and future profit sharing to compensate affected users. Shetty remarked in an X post, "The people have spoken. We will work hard on rebuilding and creating value for everyone."