WazirX moves to Panama, parent firm rebrands to Zensui

Tech

WazirX moves to Panama, parent firm rebrands to Zensui

India-serving but Singapore-based crypto exchange WazirX is moving its operations to Panama after local courts declined to approve the firms restructuring plan.

In an email sent to its users, WazirX shared recent redacted legal documents outlining the move. One of the documents revealed that WazirXs parent company, Zettai, will move to Panama and rebrand.

“Zettai has taken steps to incorporate a subsidiary, Zensui Corporation […] in the Republic of Panama, and has been preparing for the transfer of the operations of the Platforms cryptocurrency-related services to Zensui,” the document said.

This follows Singapores central bank setting a deadline of June 30 for local crypto service providers to stop offering digital token (DT) services to overseas markets.

In an X post on June 4, WazirX said a Singapore court declined to approve its restructuring plan.

Jalaj Jain, the founder of JALAJ719 Consultants and a lawyer who transitioned to consulting, told Cointelegraph that there may also be legal repercussions internal to WazirXs India-based operations. “However, it would be premature to draw definitive conclusions in the absence of clear guidance from Indian regulators or directly affected stakeholders,” he added.

WazirX eyes fresh start with Zensui

Zensui was incorporated in Panama on March 10, and the agreement for the transfer of Zettais operation to the company is already finalized and ready for execution, according to the company.

Once executed, the platforms cryptocurrency services are expected to be transferred within two to three business days.

Zensui will also be responsible for issuing WazirX recovery tokens, which are tied to the companys post-hack compensation scheme.

The company also said it does not intend to apply for a license to continue operating in Singapore or register with Indias Financial Intelligence Unit, despite serving Indian customers.

The upcoming recovery tokens

WazirX‘s recovery token is almost like an onchain IOU that the exchange plans to mint for every creditor of the exchange. The court filings follow a Singapore court’s approval of WazirX‘s plan to repay the victims of its $235 million hack, which has been linked to North Korea’s state-sponsored hackers.

Recovery tokens represent the remaining claims that were not covered by the initial distribution and track a users outstanding balance. Holders are expected to periodically receive additional distributions funded by WazirX profits and recovered assets.

More than 90% of the voting creditors of the Indian crypto exchange WazirX voted in favor of the platform‘s post-hack restructuring plan in April. WazirX promised that those tokens may yield 75% to 80% of the value of users’ account balances at the time of the hack.