Cryptocurrency exchange WazirX is considering moving its operations to Panama after the Singapore High Court blocked its restructuring efforts worth $235 million.
Potential Move to Panama
WazirX, a prominent cryptocurrency exchange, is exploring relocation options to Panama after the Singapore High Court blocked its restructuring efforts. Furthermore, this ruling came in response to a failed $235 million restructuring attempt.
Failed Restructuring and Its Consequences
Following a hack in July 2024, Zettai Pte Ltd, the holding company for WazirX, proposed a restructuring plan that ultimately was rejected by the court. The plan aimed to repay 85% of user claims, but was ultimately not accepted by the Singapore High Court.
User Concerns
According to Sonu Jain, a Chartered Accountant and Petitioner, 'The honourable Singapore Court had set the date of June 4 for verdict in the WazirX restructuring petition as their moratorium deadline of June 6 was approaching. However, recently, the Singapore government had passed an order making it mandatory for companies catering crypto services to foreign clients to register themselves.'
User assets, including Bitcoin and Ethereum, remain inaccessible due to unresolved financial issues, raising concerns among both users and industry stakeholders.
The discussions around a possible move to Panama and unresolved financial issues may significantly influence user trust and future restructuring strategies for WazirX.
