[YS Exclusive] Zettai seeks Singapore High Court approval to convene creditors meeting

Zettai, the parent entity of Zanmai Labs, which operates the WazirX cryptocurrency exchange in India, has filed an application with the Singapore High Court for leave to convene a meeting of its creditors.

The application, which was submitted on December 6, 2024, if granted, will allow the company to convene a meeting of WazirX users (scheme creditors). The company said that the scheme will only become effective if it is approved by the requisite majority of the scheme creditors and approved by the High Court of Singapore.

Currently, the proposed scheme, pending approval, includes initial distributions within 10 business days after the scheme has become effective.

The scheme involves the distribution of the company's net available liquid funds, which are reportedly sufficient to cover over 100% of the USD value of liabilities as on July 18. The funds will be disbursed to scheme creditors in proportion to the token balances held in their portfolio.

Currently, the company has liquid assets amounting to 566,385,206M USDT as of December 5 10:00 AM IST, and total claims of 546.47M USDT as of July 18, 1:00 PM IST. The company added that this would offer its scheme creditors an opportunity to fully recover their USD equivalent claims and potential additional returns.

This move is expected to ensure the creditors benefit from the ongoing crypto bull run with Bitcoin prices surging past $100,000.

“The restructuring scheme reflects our unwavering commitment to creditors during this challenging time,” said Nischal Shetty, Founder of WazirX.

“By voting 'yes' in favour of the Scheme of Arrangement, creditors will empower us to prioritise timely distribution and create an operational framework that ensures long-term stability,” he added.

The leave application is the next step in the company’s scheme timeline calculator, which was put out by the company to guide users through its restructuring process.

In August, Zettai filed an application with the High Court of Singapore for a moratorium under Section 64 of the Insolvency, Restructuring, and Dissolution Act, 2018 after WazirX suffered a cyberattack in July.

Hackers allegedly stole over $230 million worth of assets from the platform during the heist. Following the attack, the company filed a First Information Report (FIR) in New Delhi a day after the breach.

Around a month later, the Intelligence Fusion and Strategic Operations of Delhi Police made an arrest in connection with the heist, and a chargesheet was filed, which was viewed by YourStory.

(This is a developing story and the copy will be updated.)