WazirX Scam: Why Are Investors Still Waiting for Their Money? Singapore Court Decision Explained

WazirX scam update: Find out why investors haven’t received their funds yet after the massive WazirX cyberattack. Learn how a Singapore court’s ruling against parent company Zettai Pte Ltd affects fund recovery.

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WazirX Scam Deepens as Exchange Abandons Singapore for Panama

The WazirX scam continues to unfold as the India-focused crypto exchange exits Singapore amid regulatory setbacks and legal scrutiny. The latest blow came on June 4th, when the Singapore High Court, under Judicial Commissioner Kristy Tan, rejected WazirX’s restructuring plan. This development is a new twist in the ongoing WazirX scam, which has already shaken investor confidence.

The court cited major transparency issues that have now become a central part of the WazirX scam narrative. It was revealed mid-hearing that WazirX’s leadership had secretly planned a move to Panama, a strategy that was not disclosed during restructuring discussions. This omission shocked the court and highlighted a lack of commitment to affected users—another chapter in the ongoing WazirX scam saga.

Regulatory Clampdown Amid the WazirX Scam

In parallel, Singapore’s central bank, the Monetary Authority of Singapore (MAS), tightened crypto rules. MAS mandated that unlicensed crypto firms like WazirX must cease overseas operations by June 30. With no court-approved restructuring in place, WazirX had no legal pathway to continue its services in Singapore, further deepening the WazirX scam implications.

Zettai’s Panama Pivot Confirms the WazirX Scam Strategy

The parent company, Zettai Pte Ltd, quietly registered Zensui Corporation in Panama on March 10, confirming suspicions that the WazirX scam was accompanied by a secret relocation plan. Legal documents sent to users confirmed this move. The rebranding of Zettai to Zensui and the shift of operations to Panama are seen by many as an attempt to sidestep legal scrutiny—a classic WazirX scam tactic.

Zensui will now handle WazirX’s crypto operations from Panama. The company has declared it will not pursue licensing in Singapore or register with India’s Financial Intelligence Unit, raising fresh concerns among regulators and reinforcing the global footprint of the WazirX scam.

WazirX Scam: What It Means for Users

For users already caught in the WazirX scam, this Panama shift offers little reassurance. While WazirX promises a “fresh start” under Zensui, the lack of regulatory oversight in Panama and the refusal to comply with Indian and Singaporean laws only fuel more distrust. The WazirX scam is no longer limited to a single cyberattack; it’s now a case study in corporate evasion and global regulatory arbitrage.

WazirX Cyberattack and Lazarus Group

Let’s not forget that the WazirX scam began with a massive WazirX cyberattack in July 2024, suspected to be the work of the Lazarus Group, a North Korea-backed hacker collective. With over $230 million stolen and investor funds frozen, this breach placed WazirX under international scrutiny.

WazirX Scam: What Went Wrong with Fund Recovery?

In one of India’s largest crypto exchange hacks, WazirX suffered a massive cyberattack in July 2024. Investors were left in limbo as over $230 million worth of assets vanished. Hopes for recovery rested on a restructuring plan filed by WazirX’s parent company, Zettai Pte Ltd. However, a recent Singapore court decision has now cast a dark shadow over fund recovery, frustrating affected users even further.

Singapore Court Rejects Zettai Pte Ltd’s Restructuring Plan

According to a report by ET, the Singapore High Court rejected the restructuring plan submitted in November 2024 by Zettai Pte Ltd, which owns WazirX. The court cited that Zettai is not registered in India, and therefore, its proposed plan would have no legal standing or impact within Indian jurisdiction.

WazirX confirmed this development and stated that they are considering a legal appeal against the Singapore court’s decision. The move leaves thousands of investors uncertain about the fate of their trapped funds.

Biggest Crypto Heist in Indian History

The WazirX cyberattack in July 2024 is now considered one of the biggest ever on an Indian crypto platform. Hackers made away with almost half of the exchange’s reserve, amounting to over $230 million (approx ₹2,021 crores).

Suspected Culprit: North Korea-Backed Lazarus Group

Blockchain analysts suspect the notorious Lazarus Group, backed by North Korea, may be behind the attack. The group has been linked to several high-profile crypto heists worldwide, making it a prime suspect in this case as well.

FBI Shows Interest in the Investigation

On July 29, 2024, the FBI reportedly reached out to WazirX for cooperation in the investigation. The U.S. federal agency is particularly interested in determining whether North Korean cybercriminals were involved in the hack.

Indian Government Prepares Crypto Policy Framework

In a related development, the Indian government is working on a comprehensive cryptocurrency policy. A discussion paper is expected to be released soon, aiming to build a regulatory framework for digital assets. This move comes amid growing global interest in crypto, especially after strong endorsements from global leaders like former U.S. President Donald Trump.

WazirX’s Official Response

WazirX, in a public statement, expressed disappointment with the court’s decision and emphasized their commitment to investors:

“Our primary objective remains to start distribution to investors as soon as possible. We are exploring all legal options and will appeal the Singapore court’s ruling,” the statement read.

Impact on WazirX Investors

The WazirX scam has left thousands of Indian investors in a prolonged state of uncertainty. Many had invested significant sums into the platform, only to have their funds frozen or lost. The rejection of the restructuring plan delays any hope of recovery and highlights the regulatory and legal risks in crypto investing.

What Happens Next?

With Zettai Pte Ltd’s restructuring plan struck down and an appeal pending, the recovery of investor funds is now dependent on the outcome of legal proceedings. Meanwhile, investigations by global agencies like the FBI may provide new leads.

Conclusion

The WazirX scam continues to be a cautionary tale in India’s fast-growing cryptocurrency space. With over $230 million in investor funds stuck, the road to recovery is still uncertain. The Singapore court’s decision has added another layer of complexity, making it crucial for investors to stay informed and cautious in the evolving crypto landscape.