What happened?
The Singapore High Court has denied the moratorium application from Zettai, WazirX’s parent company, which aimed to restructure and distribute funds to users affected by a massive $234 million hack. In March, Zettai established a new firm in Panama called Zensui without informing the court or its users. WazirX plans to appeal the decision while continuing to explore legal options for fund distribution.
Who does this affect?
This affects WazirX’s users who are waiting for reimbursement of the funds lost in the previous hack. It also impacts the regulatory landscape, as Zettai’s shift and rebranding create compliance issues, particularly with the Monetary Authority of Singapore’s licensing requirements. Moreover, Indian users now have the opportunity to pursue litigation against WazirX to recover their funds.
Why does this matter?
The rejection of the restructuring plan could destabilize user trust in WazirX and affect investor confidence in the cryptocurrency market. The situation raises concerns about transparency and compliance within international exchanges and could influence regulatory approaches in different jurisdictions. Additionally, potential litigations in India might set precedents for other users dealing with similar exchange failures globally.