Indian cryptocurrency exchange WazirX announced it is moving operations from Singapore to Panama after a local court declined to approve the company’s restructuring plan following a $235 million hack earlier this year.
The exchange’s parent company, Zettai, has incorporated a subsidiary called Zensui Corporation in Panama and will transfer all cryptocurrency-related services to the new entity, according to legal documents released Tuesday.
WazirX said on social media platform X that the Singapore court’s rejection of its restructuring plan prompted the relocation decision. The move comes as Singapore’s central bank has set a June 30 deadline for local crypto service providers to stop offering digital token services to overseas markets.
The transfer of operations to Panama-based Zensui is expected to complete within two to three business days once executed, WazirX said. The company stated it does not plan to apply for licenses to continue operating in Singapore or register with India’s Financial Intelligence Unit, despite primarily serving Indian customers.
Zensui will oversee the issuance of WazirX recovery tokens, which are part of the exchange’s compensation plan for users affected by the July hack. The attack, which cybersecurity experts have linked to North Korean state-sponsored hackers, compromised user funds worth approximately $235 million.
More than 90% of WazirX’s creditors approved the post-hack restructuring plan in April. The exchange promised the recovery tokens could yield 75% to 80% of users’ account balances at the time of the breach.
The recovery tokens function as blockchain-based IOUs that track users’ outstanding balances. Token holders are expected to receive periodic distributions funded by WazirX profits and any recovered assets.
Legal expert Jalaj Jain, founder of JALAJ719 Consultants, told Cointelegraph there may be legal implications for WazirX’s India-based operations, though he cautioned against drawing definitive conclusions without clearer regulatory guidance.
The relocation highlights ongoing regulatory challenges facing cryptocurrency exchanges operating across multiple jurisdictions, particularly those serving customers in countries with evolving digital asset regulations.
WazirX has not specified when the Panama operations will begin or provided details about regulatory compliance in its new jurisdiction.
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