Is WazirX’s Recovery Being Sabotaged by a Missing Key Signature?

WazirX's comeback hits another roadblock—this time, a cryptographic snag. The Indian exchange, once a rising star in crypto's wild east, now faces delays in its revival plan. Why? A single key signature stands between WazirX and its next chapter.

Behind the Scenes: The Signature Standoff

Insiders whisper that the holdup stems from multi-signature wallet protocols. Without this digital green light, frozen funds stay frozen—and traders keep fuming. The exchange claims it's 'working tirelessly' (aren't they all?). Meanwhile, competitors feast on the uncertainty like vultures on a stalled bull run.

When Tech Meets Bureaucracy

Security measures designed to protect now strangle progress. The irony? This same multi-sig tech once made WazirX a darling of compliance hawks. Now it's become their cage—proof that in crypto, yesterday's safeguards are tomorrow's shackles.

The Bottom Line: Trust Dies in Darkness

Every day this drags on, more users flee to offshore alternatives. Because nothing rebuilds confidence like watching your exchange beg for a cryptographic permission slip. Welcome to decentralized finance—where your assets are only as free as your custodian's private keys.

The Uncomfortable Truth Hidden in Plain Sight

At timestamp 32:05, George Gwee of Kroll outlines a sequence:

• Zettai will transfer crypto-crypto operations to Zanmai India via OTA.
• Zanmai India will then execute a Deed Poll to assume obligations under the Scheme.
• Only after this process can user withdrawals begin.
• But again, the OTA is subject to Binance’s approval.

This raises urgent legal and ethical questions. Why is WazirX proceeding with a creditor vote and restructuring plan, knowing that Binance, a party not even involved in the Singapore court proceedings, holds the keys to whether or not users will get their funds?

This crucial point was first flagged by Jason W, a Vauld user and vocal advocate for fair crypto insolvency resolutions. Vauld, too, went through a similar restructuring via Kroll. More than three years later, users there still haven’t received their money. 

Vauld users allege that Gwee made many false promises, and he now co-manages Vauld’s restructuring, which has failed to recover any of that company’s illiquid assets in the 2 years since receiving court approval …or something along those lines (it will be 2 years on Aug 10).

The Bigger Lie: A “10-Day Distribution” Promise

Throughout the scheme documents and meetings, WazirX executives have reiterated that the first distribution will happen within 10 days of the Effective Scheme Date.

But in the same townhall, at timestamp 29:51 onwards, the following sequence is explained:

• The first distribution will be made into users’ Scheme X accounts.
• These accounts will be operated by Zanmai India.
• Zanmai India will facilitate withdrawals post-execution of a Deed Poll.
• The Deed Poll cannot be executed until the OTA is signed.

In short: No OTA means no Deed Poll, which means no withdrawals.

Binance — Not Party to the Court, Yet Holding the Cards?

Shockingly, Binance has never been a party to the Singapore Court proceedings. Yet now, the very ability of users to withdraw funds rests on Binance’s undisclosed decision-making in a private dispute with Zettai.

This was called out by Romy Johnson (TOOFAAN Army):

“Binance, which was never a party to Singapore Court proceedings, now decides if users can withdraw their crypto and funds?”

Further revelations include:

• Zanmai will execute a Deed Poll only after receiving operational control via OTA.
• That OTA needs Binance’s approval.
• Binance has consistently denied operational ownership of WazirX.

Yet, the entire recovery hinges on them.

Romy Johnson further adds, “Zettai initially justified the restructuring by claiming it WOULD allow users to access their funds without having to wait for a resolution with Binance.

Yet now, fund distribution and withdrawals are once again contingent on Binance’s approval, effectively putting users back at the mercy of the very dispute they claimed to bypass.

This is a direct contradiction of the original premise and a clear failure in safeguarding user interests.”

An anonymous source has stated, “This should again go in the SG court hearing, and the current voting should be cancelled. They got approval to MOVE ahead with the scheme since they stated on 15th/16th that Zanmai will handle crypto-to-crypto as well as crypto-to-INR transactions. After that, I had emailed MAS and SG court about this very point for Zanmai needing a licence from Binance to run crypto-to-crypto transactions.”

CoinDCX Was Ready to Acquire WazirX, But Rejected

Another damning insight from user discussions: WazirX earlier rejected an offer from CoinDCX to acquire the exchange. Why? Had they accepted, users might have had a WHITE knight to save them.

Instead, WazirX chose to push liabilities onto users, asking them to fund the restructuring.

Also Read: Rise and Fall of WazirX: Mapping India’s Biggest Crypto Hack

Hundreds of Millions in Dispute — Never Disclosed

Users also allege that WazirX never officially disclosed just how much in assets and company profits are currently caught in the Binance-WazirX ownership dispute. These undisclosed millions may very well belong to the users.

Even more concerning, companies involved in this legal triangle, including CrowdFire (formerly JustUnfollow.com), which allegedly had the original contractual agreement with Binance, have shut down or been struck off.

“Even if Binance or WazirX is held accountable later, who will users go after legally now that these companies don’t even exist?”

🚨BREAKING NEWS:🚨
THE FIU-IND (Financial Intelligence Unit) submits that the FIU is carrying out an investigation on #WazirX (Zanmai Labs Pvt Limited)

Source: Verified ✅
(prefer to remain anonymous)

The 2nd image is a screenshot from official submission from FIU-IND pic.twitter.com/s8Cng4M9gA

The Wikipedia Disappearance

In a bizarre twist, WazirX’s Wikipedia page no longer exists. It now redirects to Binance’s Wikipedia profile. A subtle yet symbolic reflection of this entire confusion.

Conclusion: Users Trapped in a Legal No Man’s Land

WazirX claims this restructuring scheme is the fastest way to recover funds. But everything from their townhall makes it clear. Unless the confidential Binance-Zettai dispute is resolved and Binance agrees to sign the OTA, no one is getting their funds back.

This isn’t just a legal technicality. This is the foundation of the entire plan.

The current vote, scheduled between August 2 and August 6, must be reconsidered in light of these revelations. As pointed out by affected users:

“If Binance has to approve the OTA and the OTA is required for fund distribution, then why is the court allowing this vote to continue when the entire process is technically not executable?”

With WazirX pushing a “yes vote” campaign based on false timelines and promises of fast recovery, users deserve transparency, not another trap.

Also Read: Hack, Hide, Repeat: How WazirX Fooled Singapore and Robbed India