After 11 months of silence regarding the hack on WazirX, court proceedings in Singapore have uncovered serious management violations and a lack of transparency for users.
Exposing the Flaws in WazirX's Scheme
Judge Kristy Tan in Singapore has uncovered the manipulations by WazirX concerning the so-called 'user vote' on the platform's future. The proceedings revealed that users were not properly informed about the plans, casting doubt on the legality of such voting. The judge noted, 'Why weren't scheme creditors informed of this plan so that they could make an informed vote?'
The Need for a License for Zettai
WazirX's partner, Zettai, was declared illegal as it did not possess a Digital Token Service Provider (DTSP) license to conduct cryptocurrency services in Singapore. Their legal counsel confirmed they never even intended to apply for the license. This is a serious violation of the law, as operating without a license in Singapore is a criminal offense.
Who is Accountable for Disregarding Laws?
Judge Tan also highlighted that WazirX has never registered with India's Financial Intelligence Unit, which is mandatory for crypto exchanges. As a result, users remain without answers and support, receiving news that the platform operated illegally in both Singapore and India.
The events surrounding WazirX clearly illustrate the need for legal compliance in the cryptocurrency industry and for accountability to affected users. Judicial findings revealing violations should signal serious changes in cryptocurrency regulation.
