A new development has emerged in the ongoing saga of the WazirX crypto hack. The Singapore High Court recently rejected the restructuring plan proposed by Zettai, WazirX’s parent company. This setback comes amid revelations that Zettai failed to disclose the creation of a Panama-based subsidiary, further complicating the path to returning seized digital assets to affected users.
The court’s ruling was based on Zettai’s failure to disclose a Panama-based subsidiary, Zensui Corporation. Zensui was incorporated on March 10, 2025. Court documents show that the parent company did not inform the court or users about this subsidiary or the transfer of assets to it. This lack of transparency raised concerns.
Zettai said the Panama subsidiary was meant as a temporary custody solution. It was to hold cryptocurrency assets outside Singapore and follow regulations after June 30. However, the court found this arrangement insufficient.
Zettai also revealed it does not plan to obtain a Digital Token Service Provider (DTSP) license in Singapore. It will not register with India’s Financial Intelligence Unit (FIU-IND) either. Both licenses are essential for legally distributing digital tokens. Experts say this regulatory failure was key to the court’s rejection.
WazirX posted a statement on the social media platform X. It said it respects the court’s decision. The company remains committed to following all legal and regulatory rules. Sources close to the firm say Zettai may appeal the ruling.
WazirX hinted at a possibility of appeal in their official X post:
Singapore law requires DTSPs to suspend or stop business outside the country by June 30 without a license. This adds pressure on Zettai’s plans.
Despite the court’s rejection, Zettai said earlier that 93.1% of eligible creditors approved the restructuring plan. These creditors represent 94.6% of the total claim value. A total of 141,476 creditors voted, with claims worth $195.65 million.
The Singapore High Court’s decision highlights the need for transparency and regulatory compliance in crypto. While WazirX and Zettai are important players in India’s crypto market, this ruling delays asset recovery. It also adds to the challenges crypto firms face worldwide. Investors and stakeholders will watch closely as the company decides its next steps.
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