Zanmai India to take over WazirX operations, MAS clears key compliance hurdle

Zanmai India to take over WazirX operations, MAS clears key compliance hurdle originally appeared on TheStreet.

India’s top crypto exchange WazirX may finally be on a fast track to unlocking frozen user funds — if a newly filed restructuring plan gets a green light from the Singapore High Court.

A fresh affidavit submitted by Nischal Shetty, seen by TheStreet, dated July 4, outlines critical updates that could resolve key objections raised by the Court in early June, particularly around operational clarity and potential regulatory breaches under Singapore’s Financial Services and Markets Act (FSMA).

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The proposal marks a change in strategy following the court’s rejection of an earlier plan last month. At the heart of the update is a major shift in operational strategy. The affidavit confirms that all core activities of the exchange, including crypto-to-crypto trading, user withdrawals, and technical operations — will be handed over to the Indian-incorporated affiliate, Zanmai Labs.

In Shetty’s own words, the intention is to transfer “crypto-crypto operations to Zanmai India (instead of Zensui) to facilitate the full resumption of operations of the Platform.”

What went wrong the first time?

Back in June, the Singapore court dismissed Zettai’s previous Scheme despite receiving overwhelming creditor approval — 93.1% of voters representing 94.6% of affected assets backed the plan. But the court raised red flags about the involvement of Zensui and questioned whether the proposed crypto payouts complied with Singapore’s FSMA.

The scheme was initially introduced in response to WazirX’s $234 million hack in July 2023, which was linked to a North Korean cybercrime ring. The attack left over 4.4 million users locked out of their funds. The proposed fix promised to pay 85% of assets upfront and the remaining balance over the next three years.

The High Court had found “Zettai will be in contravention of the Financial Services and Markets Act 2022 FSMA for holding the cryptocurrency tokens and thereafter effecting the First Distribution pursuant to the Scheme,” per affidavit submitted by Nishchal Shetty.

MAS weighs in

A key development in the latest affidavit comes from Singapore’s financial regulator. The affidavit reveals that “MAS clarified that, on the assumption that the First Distribution is – and is distributed to creditors outside of Singapore in accordance with the terms of the Scheme that is approved by the Court, Zettai is not carrying on a business of providing a digital token service within the scope of Section 137(3) of the FSMA.”

Story ContinuesThis clarification is expected to significantly bolster Zettai’s case in the eyes of the High Court.

Local control, clearer path

The pivot to Zanmai India as the operating entity also aims to provide much-needed legal and regulatory clarity. According to the affidavit, all user transactions and interface operations will be handled by Zanmai. Zensui, the Panama-registered entity flagged by the court earlier, is now effectively sidelined.

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The company is not seeking another creditor vote unless explicitly required by the Court. The affidavit states that the updates “do not materially change the Scheme” but rather “clarify aspects that were previously misunderstood or inadequately explained.”

If the High Court accepts the clarified proposal, Zanmai India would immediately begin the process of unlocking user balances and restoring exchange functionality. For millions of affected users, this may be the final turn in what has been a long and uncertain road to recovery.

As Shetty concludes in the filing: “Zettai had always contemplated the possibility of the Platform resuming full operations as part of the implementation of the Scheme, hence the Scheme had provided for a sharing of any Platform Profits with Scheme Creditors in the event of such full resumption.”

Zanmai India to take over WazirX operations, MAS clears key compliance hurdle first appeared on TheStreet on Jul 10, 2025

This story was originally reported by TheStreet on Jul 10, 2025, where it first appeared.

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