WazirX restructuring 2025 update begins with a crucial shift – the Singapore High Court has granted WazirX additional time to push its revised plan after legal hurdles stalled the original proposal. This move gives the exchange temporary relief from creditor action and allows it to move crypto operations to a newly formed Panama-based entity. While the framework now includes a token-based asset recovery mechanism, the lack of clarity around timelines and redemption has left many users still waiting.

Key Takeaways: What You Need to Know

• Singapore court gives WazirX more time to defend its restructuring plan
• Crypto operations shifted to Panama-based Zensui Corporation
• MAS deadline forces WazirX to exit overseas token services from Singapore
• Recovery tokens to cover 75–80% of user assets (no fixed timeline)
• Withdrawals still blocked; token issuance pending court approval
• Legal uncertainty remains over enforcing obligations offshore
• 93% creditor approval vs. ongoing user frustration and doubts

Singapore Court Grants WazirX More Time

On June 24, 2025, the Singapore High Court allowed WazirX’s parent company, Zettai Pte Ltd, to submit additional arguments supporting its restructuring plan. This came after the court earlier dismissed the original Scheme of Arrangement on legal grounds. Along with this decision, the court extended the moratorium protecting WazirX from creditor actions while the revised proposal is under review.

This legal extension gives WazirX room to continue restructuring without the immediate threat of lawsuits or creditor pressure, although it doesn’t guarantee the court’s approval of the new plan.

Transition to Zensui Corporation in Panama

This move came under mounting regulatory pressure. Singapore’s central bank, the Monetary Authority of Singapore (MAS), has mandated that all locally registered crypto service providers must stop offering digital token services to overseas users by June 30, 2025. The directive left WazirX with limited options to continue operating globally under Zettai Pte Ltd. By shifting to a Panama-based entity, WazirX aims to bypass the MAS restrictions while restructuring its user obligations offshore.

As part of the revamped resolution, WazirX is transferring its crypto-related operations to a new offshore entity — Zensui Corporation — based in Panama. The company was incorporated on March 10, 2025. The handover is expected to be completed in a matter of days.

The rationale behind this move is simple: Panama offers a more flexible environment for crypto operations, giving WazirX better control over how it handles digital assets, manages liabilities, and issues recovery tokens. This jurisdictional shift is also likely aimed at sidestepping the tighter regulatory scrutiny faced in Singapore.

Why the Panama Move Matters for WazirX

Moving operations to Panama isn’t just a legal convenience — it reflects a deeper strategy. With Singapore’s courts scrutinizing Zettai’s jurisdictional relevance and control over global crypto operations, the switch to Zensui allows WazirX to reset the table.

Panama provides regulatory breathing room and allows WazirX to carry out actions such as issuing on-chain tokens and managing decentralized recovery mechanisms without hitting constant legal roadblocks. It’s also a sign that other crypto firms facing similar crises may follow suit and consider offshore restructuring.

Token-Based Recovery: What’s on the Table

WazirX plans to issue on-chain “IOU” recovery tokens to compensate affected users. These tokens are expected to represent 75% to 80% of the value held by users at the time of the cyberattack. However, there are important caveats:

• The recovery amount is not guaranteed. Token value depends on market conditions and the success of WazirX’s planned decentralized exchange.
• There’s no fixed timeline for when these tokens will be distributed or when they can be redeemed.
• So far, fiat withdrawals remain unavailable, leaving users with no liquid access to their funds.

In April, over 93% of creditors approved this approach, giving the plan legitimacy from an institutional standpoint. But for individual users, the lack of clarity continues to raise concerns.

Legal Hurdles Still Exist

Despite the court’s recent flexibility, WazirX still faces complex legal questions. One core issue is whether liabilities held under Singapore’s legal framework can be transferred and honored under a Panama-based operation.

Unless Zettai can clearly justify this shift in court and demonstrate how user rights will be protected, there’s still a chance the revised scheme could be rejected. The moratorium gives WazirX time — but not a free pass.

Withdrawals Still Frozen

For users hoping to access their funds, the wait continues. Withdrawals remain blocked. Token issuance is pending legal approval. And any payout process is now tied to Zensui’s internal roadmap, which hasn’t been made public yet.

As of now, users have no visibility on:

• When tokens will be credited
• How they’ll be priced
• When, or if, they can be redeemed for fiat

Creditor Support vs. User Frustration

Institutional creditors may be backing the plan, but user sentiment is mixed. On community channels like Reddit and Telegram, many WazirX users are voicing concerns about:

• Poor communication from the company
• Vague or missing timelines
• Whether these tokens will ever be tradable or useful
  

For most users, recovery tokens are uncharted territory — and not a replacement for actual refunds.

What to Watch Next

A few key developments will decide how this situation unfolds:

• The Singapore court’s final ruling on the revised Scheme of Arrangement
• Public release of token issuance schedules and redemption mechanics
• Clarification on Zensui Corporation’s operational authority
• Progress updates on WazirX’s decentralized exchange — the core mechanism tied to token value

To Sum Up: A Fragile Recovery, Not a Full Return

WazirX may have bought itself more time, but the recovery plan remains fragile. The Panama shift, recovery token model, and court negotiations are pieces of a complex puzzle — one that hasn’t come together yet. While creditor approval signals institutional support, users are still in limbo. Until there’s clarity on token distribution, actual recovery value, and timelines, trust will remain fractured.

For now, this is a case of wait and watch. Whether WazirX emerges as a cautionary tale or a turnaround story depends entirely on how it handles the next few weeks.

 Reader Advisory: What You Should Do Now

If you’re a WazirX user affected by the breach or holding dormant balances, here’s what you can do:

• Keep proof of your balances and activity. Document screenshots and account statements.
  
• Ignore unofficial recovery schemes. Only trust communications from WazirX or Zensui’s verified channels.
  
• Don’t trade tokens before understanding their terms. Wait for official details on how recovery tokens will function.
  
• Join community discussions. Active Telegram or Reddit groups may help you stay better informed than company emails alone.