The India-focused yet Singapore-based cryptocurrency exchange WazirX is relocating its operations to Panama after local courts rejected the company’s restructuring proposal.
In a message dispatched to its users, WazirX disclosed recent redacted legal documents detailing the transition. One document indicated that WazirX’s parent corporation, Zettai, plans to shift to Panama and undertake a rebranding initiative.
“Zettai has initiated the incorporation of a subsidiary, Zensui Corporation […] in the Republic of Panama, and preparations are underway for the relocation of the operations of the Platform’s cryptocurrency-related services to Zensui,” the document stated.
This development follows Singapore’s central bank establishing a deadline of June 30 for domestic crypto service providers to halt the offering of digital token (DT) services to international markets.
In a post on X on June 4, WazirX announced that a Singapore court had turned down its restructuring proposal.
Related: Binance, WazirX among crypto companies avoiding taxes in India, claims government
Jalaj Jain, the founder of JALAJ719 Consultants and an attorney who shifted to consulting, informed Cointelegraph that there may also be legal implications within WazirX’s operations in India. “However, it would be hasty to draw final conclusions without explicit guidance from Indian regulators or stakeholders directly affected,” he remarked.
WazirX aims for a fresh beginning with Zensui
Zensui was established in Panama on March 10, and the agreement for the transition of Zettai’s operations to the company is already finalized and prepared for implementation, according to the firm.
Once executed, the platform’s cryptocurrency services are anticipated to be relocated within two to three business days.
Zensui will also be accountable for issuing WazirX recovery tokens, which are linked to the company’s compensation scheme following a hack.
The firm further stated it has no plans to seek a license for continued operations in Singapore or to register with India’s Financial Intelligence Unit, even though it services Indian clients.
Related: Binance denies accountability in $230M WazirX hack, encourages user repayments
The forthcoming recovery tokens
WazirX’s recovery token resembles an on-chain IOU that the exchange plans to create for every creditor of the platform. The court submissions follow a Singapore court’s endorsement of WazirX’s strategy to reimburse the victims of its $235 million breach, which has been associated with state-sponsored hackers from North Korea.
Recovery tokens symbolize the outstanding claims that were not addressed by the initial allocation and monitor a user’s unpaid balance. Holders are expected to periodically receive additional distributions funded by WazirX profits and recovered assets.
Over 90% of the voting creditors of the Indian crypto exchange WazirX supported the platform’s post-hack restructuring strategy in April. WazirX assured that those tokens may yield 75% to 80% of the value of users’ account balances at the time of the breach.
Magazine: WazirX hackers prepared 8 days before attack, con artists impersonated fiat for USDT: Asia Express
