- Zettai’s revised plan removes offshore entity Zensui, satisfying FSMA rules and allowing WazirX’s restructuring to proceed.
- The court extended Zettai’s creditor protection and approved a fast-tracked revote, boosting hopes for WazirX platform reopening.
- Zanmai Labs will now lead all user asset distributions, aiming to recover funds lost in the 2023 $235M WazirX security breach.
The Singapore High Court has cleared a key legal hurdle for WazirX, setting aside its previous June 4 ruling that blocked the Indian crypto exchange’s restructuring plan. The court accepted Zettai’s revised proposal and granted permission for an expedited revote.
Zettai is the parent company of Zanmai Labs, which operates the WazirX platform. According to court documents, new arguments submitted on July 15 and 16 addressed earlier regulatory concerns tied to Singapore’s Financial Services and Markets Act (FSMA).
The moratorium protecting Zettai from creditor action has also been extended, giving the company time to complete the revoting process. If approved, the exchange could reopen, and user distributions could begin within weeks.
Court Accepts Revised Plan Following Regulatory Clarification
Earlier, the court had rejected the plan due to concerns over Zensui, a Panama-based entity linked to the platform’s operations. Authorities questioned whether the initial structure violated FSMA provisions.
However, Zettai amended the scheme and withdrew plans to incorporate Zensui. Notably, Singapore’s Monetary Authority clarified that Zettai would not breach local rules if distributions occurred outside the country.
In response, Zettai restructured its operations to shift crypto services to Zanmai Labs, an Indian-registered firm. This change satisfied the court’s earlier objections. All trading, withdrawals, and user interactions will now be handled by Zanmai, replacing Zensui entirely.
According to an affidavit from Zettai co-founder Nischal Shetty, the transfer is essential for the platform’s full resumption of services.
Revote Timeline Shortened to Expedite Platform Reopening
The High Court has granted Zettai an expedited schedule to inform creditors and conduct the revote. The company emphasized its commitment to completing the process swiftly and reopening the exchange.
If creditors approve the amended scheme, Zanmai will manage the distribution of user assets affected by the July 2023 security breach. WazirX’s previous plan had already gained overwhelming creditor support, with over 93% approval by headcount and 94.6% by value.
However, the court withheld approval pending resolution of FSMA concerns, which have now been addressed. The amended scheme will now undergo a final creditor vote.
Asset Recovery and User Distribution to Be Led by Zanmai Labs
With the court’s approval for a revote, the distribution process is expected to begin without further delay once approved. Zettai confirmed that Zanmai Labs will oversee all future distributions to affected users under the revised structure.
The move is part of a broader strategy to resume full operations on the WazirX platform, following last year’s $235 million crypto hack. Overall, the Singapore High Court’s latest order allows Zettai to conduct a new creditor vote under revised terms.
The plan removes offshore entities, centralizes operations under Zanmai Labs, and addresses earlier compliance issues. If approved, the platform could resume services and begin returning assets to users soon.
