In the evolving story of WazirX's post-attack comeback, a new legal document might just mark a turning point. Recently filed in the Singapore High Court, co-founder Nischal Shetty's affidavit outlines critical updates that clarify regulatory concerns and solidify WazirX's restructuring plan.
This affidavit isn't just legal paperwork — it's a detailed map of how WazirX plans to legally and transparently return user funds and rebuild its operations. With endorsements from Singapore's top financial regulator and a renewed focus on user compensation, the filing has offered a much-needed clarity and confidence to both users and crypto watchers.
#1 MAS Says Zettai Is NOT in Violation of FSMA
At the heart of this filing lies a game-changing clarification from the Monetary Authority of Singapore (MAS). According to the affidavit, MAS has officially stated that Zettai Pte Ltd — the Singapore-based entity involved in the user fund distribution — is not in violation of the Financial Services and Markets Act (FSMA).
Why is this a big deal?
Because the central fear among some critics was that Zettai might need a license to carry out the one-time crypto distribution under Singapore law. However, MAS has stated otherwise: since Zettai is not offering ongoing crypto services or publicly soliciting users, the act doesn't apply.
This is a massive green light for Zettai's restructuring plan. It effectively dismantles one of the key legal arguments made against the proposal.
#2 Zettai and Zanmai: Two Distinct, Compliant Entities
Another major highlight is the firm distinction between Zettai Pte Ltd (Singapore) and Zanmai Labs Pvt Ltd (India) — something that's often misunderstood in public conversations around WazirX.
The affidavit clarifies:
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Zanmai handled INR-crypto transactions under Indian regulatory oversight.
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Zettai is a Singapore-only entity with a focus on crypto-to-crypto operations outside the INR market.
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Crucially, Zettai does not cater to Indian users nor does it promote services in India — a detail that aligns perfectly with both Indian and Singaporean laws.
This deliberate separation is not just smart structuring; it's a signal of WazirX's commitment to building a legally sound, globally compliant infrastructure as it works toward user repayments.
#3 MAS Has NO Objection to Restructuring
Beyond legal compliance, the affidavit brings one more strong point to the table: MAS has explicitly raised no objections to Zettai's court-sanctioned crypto distribution plan. In fact, it noted that no new license is required for what Zettai is planning to do.
This puts any lingering doubts about the regulatory path forward to rest, at least in Singapore.
#4 Addressing Dissent, Reaffirming User Interests
The affidavit also doesn't shy away from addressing user concerns. In response to objections from a small group of creditors, it clearly states:
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No promoters or insiders will financially benefit from the Scheme.
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All revenue going forward will be used to repay users.
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The Scheme is structured solely to return crypto to users affected by the 2024 cyberattack.
For many users, especially those still undecided, this reassurance may tip the scales. It's not just about getting paid back — it's about knowing that the process is ethical and a user-first approach.
What This Means for WazirX Users
While the court still needs to rule on the affidavit and the Scheme requires creditor approval, this document could be a major milestone in WazirX's comeback. With:
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Singapore regulators confirming compliance,
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A transparent, well-structured entity separation,
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No objection from MAS on the proposed crypto distribution, and
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A strong user-first narrative,
WazirX may be closer than ever to resuming operations and fulfilling its promise of paying users back.
For now, all eyes are on the next court hearing. But one thing is clear: this affidavit changes the tone — and potentially the trajectory — of WazirX's historic comeback story.
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