Singapore-based Zettai Pte Ltd, the parent company of cryptocurrency exchange WazirX, said on Tuesday it has applied, seeking approval for a comprehensive restructuring plan for its users to expedite the acquisition of more than USD 230 million in assets from WazirX following the i cyberattack on its site in July.
The proposed scheme of arrangement, submitted under the Companies Act 1967, sets out a clear guideline for the acquisition and distribution of funds. Once approved by the court, a meeting of creditors will be held where creditors will vote on the plan, which will require majority approval (75 percent in total) to become effective.
The move follows a four-month moratorium granted by the Singapore High Court on September 26, allowing Zettai to focus on settlement, recovery and restructuring. Under this plan, the first distribution will be made to creditors within 10 business days of the court’s approval, and subsequent payments are tied to ongoing asset recovery efforts.
WazirX creditors will receive recovery tokens, enabling them to benefit from the ongoing cryptocurrency bull market while recovering their outstanding claims.
IMPORTANT FEATURES OF THE PROPOSED EDITOR
1. Quick start distribution: Creditors receive part of their certified claims within 10 business days of approval.
2. Return tokens: Getting more from the distribution of tokens linked to asset acquisition efforts.
3. Aggressive asset acquisition: Effective cooperation with legal experts and authorities to recover stolen goods.
4. Transparency: Quarterly reporting on financial health and acquisition progress.
5. New money stream: The introduction of a decentralized exchange (DEX), with profits contributing to the return pool.
VOTING AND NEXT STEPS
The proposed program will be presented to lenders in an independent environment, with the results verified by a third-party auditor. If approved, Zettai will seek a final court order for enforcement. In the absence of approval, creditors may face extended delays related to ownership disputes not resolved through the WazirX platform.
Zettai holds liquid assets worth USD 566.38 million as of 5 December, against total claims of USD 546.47 million (as of 18 July 2024).
Nischal Shetty, Founder of WazirX, emphasized the company’s fast-track approach, saying, “By voting ‘yes’ to the restructuring process, creditors will allow timely payments and ensure long-term stability. Unlike global exchanges that take years to recover, WazirX aims to complete the process within and months, which may set a record in the history of crypto.”
WAZIRX CYBERATTACK
The WazirX cyberattack occurred on July 18, resulting in the theft of over USD 230 million worth of digital assets. The security breach resulted in WazirX losing around 45 percent of its assets.
Last month, the Delhi Police arrested a man from West Bengal in connection with the WazirX cyberattack case. The suspect, SK Masud Alam, created a fake account to facilitate cyber attacks.
WazirX, one of the leading cryptocurrency exchanges in India was founded in 2018, and serves more than 15 million users. It allows users to buy, sell and trade various cryptocurrencies like Bitcoin, Ethereum and others.
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