Zettai files for WazirX moratorium application in Singapore court

Zettai Pte Ltd, the parent entity of Zanmai Labs which operates WazirX in India, has filed an application with the High Court of Singapore for a moratorium under Section 64 of the Insolvency, Restructuring and Dissolution Act, 2018.

The application, which was filed on Tuesday, comes in the aftermath of a cyberattack on July 18 that shook the crypto stock exchange with the transfer of assets worth $234.9 million to an unknown address.

According to the company’s blog post, the moratorium will provide breathing space as Zettai proceeds to restructure its liabilities to address users’ concerns about cryptocurrency balances and recovery.

The hearing date has not been scheduled, the company added.

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“We anticipate that under a planned restructuring, the impact from the cyberattack will be allocated pro-rata across users who rank equally with each other as unsecured creditors, and users will receive a share of available token assets associated with the Platform proportionate to their share of all users’ unsecured claims for their account balances,” the company noted in the blog post.

“The restructuring scheme, if approved by creditors and sanctioned by the High Court of Singapore, Zettai will be able to re-open cryptocurrency withdrawals in line with the terms of the Scheme,” the post added.

According to the company, the restructuring plan is expected to take at least six months to formulate.

Singapore-based Zettai Pte owns a 99% stake in the Indian entity while Nischal Shetty holds the remaining.

Shetty, who is the Co-founder of WazirX, holds a 74.27% stake in Zettai Pte Ltd while Sameer Hanuman Mhatre and Siddharth Menon hold 18.56% and 7.17% stake, respectively, according to a report by Entrackr.

On August 23, WazirX informed that its users would soon be able to withdraw up to 66% of their INR balances following the cyberattack-induced suspension.

Earlier this month, the company filed a first information report (FIR) in New Delhi regarding the theft of $234 million worth of crypto assets.

(The copy was updated to reflect Zettai filed for the moratorium.)