June 09, 2025
By Anjali Kochhar
After a year of turmoil following a devastating $230 million hack, WazirX, the once-prominent Indian crypto exchange, is charting a new path. But this time, the road leads not to redemption through Singapore’s legal system, but a possible rebirth in Panama.
In July 2024, the platform suffered one of the largest security breaches in Indian crypto history. More than 4.4 million users were affected, left unable to access their funds. The company quickly sought protection under Singapore’s legal framework, filing for a moratorium and submitting a restructuring proposal. The plan, supported by 93% of creditors, promised a comeback strategy with refund mechanisms and a revamped operational framework.
That hope came crashing down on June 5, 2025, when a Singapore court officially dismissed WazirX’s proposal, eliminating the legal cover that had shielded the firm from immediate liabilities and potential legal action. The collapse of the revival plan sent ripples across the already-cautious Indian crypto community.
Vikram Subburaj, CEO of Giottus Crypto Platform, didn’t mince words. “It is almost one year since the $230 million hack in July 2024. It had left over 4.4 million users unable to access their funds. Now after a year, the court has dismissed the restructuring plan proposed by WazirX. It is imperative that WazirX acts responsibly by immediately declaring insolvency and prioritizing the full return of customer funds. With the moratorium’s end imminent, failure to do so may result in legal actions that could further deplete remaining assets. This will ultimately harm the very users they are obligated to protect,” he said.
His remarks echoed a growing frustration within the Web3 space, where retail users often find themselves at the losing end of failed platforms, with little accountability or recovery.
Facing regulatory walls in Singapore and increasing pressure from India’s cautious financial watchdogs, WazirX now appears to be eyeing a fresh start in Panama. Industry insiders suggest the move is less about escaping scrutiny and more about repositioning in a jurisdiction that offers clarity, flexibility, and a reputation for being crypto-forward.
Panama, while not a traditional crypto hub, has recently become a safe harbor for companies wanting to recalibrate amid tightening regulations worldwide. Its evolving digital asset laws provide a runway for exchanges to rebuild, assuming they do so with transparency and trust at the core.
WazirX’s leadership believes the transition could help preserve its remaining user base and legacy products while offering a chance to regain relevance in a rapidly shifting ecosystem. A source close to the team called it “an operational reset rather than an exit,” suggesting that the company plans to carry over its core offerings and possibly relaunch with new compliance commitments.
Still, trust is fragile. And many in the crypto world believe this next chapter has to be defined not just by better laws, but by better leadership.
Siddharth Ugrankar, CEO and Co-Founder of Qila.io, offered a more optimistic but measured take: “A shift to a crypto-friendly jurisdiction like Panama can help exchanges re-establish credibility and operational stability. It signals a proactive stance in rebuilding trust, which is crucial for users and stakeholders.”
That word, “trust,” keeps coming up, because in Web3, once it’s broken, it’s almost impossible to rebuild.
The larger story, though, isn’t just about one exchange trying to survive. It’s about what WazirX represents: the growing pains of crypto in emerging markets. India has seen rapid adoption, but its regulatory ambiguity has left many platforms in limbo. The WazirX episode may end up as a case study in how not to handle user funds, legal hurdles, and international compliance.
Some voices in the community have even argued that WazirX should voluntarily wind down instead of rebranding offshore. “Rebuilding isn’t just about picking a new country,” said one investor on X. “It’s about accountability. You can’t passport away the damage done.”
Others are more pragmatic. They say if Panama gives WazirX a clean slate to repay users and relaunch with proper safeguards, then perhaps the move is not an escape, but a necessary evolution.
Ultimately, whether Panama becomes WazirX’s comeback story or its final chapter depends on what happens next. Will the company communicate clearly, refund users honestly, and implement real security upgrades? Or will this be another name on the list of Web3 platforms that tried to outrun their past?
About the author
Anjali Kochhar covers cryptocurrency and blockchain stories in India as well as globally. Having been in the field of media and journalism for over four years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.
