Singapore HC rules to allow WazirX roll out scheme to distribute assets to affected users
The decision comes days after the Indian crypto exchange froze the first tranche of assets stolen in the July 2024 cyberattack.
The Singapore High Court on Thursday ruled in favour of Zettai for rolling out a scheme meeting with the affected users of the crypto exchange, WazirX.
Zettai is the parent entity of Zanmai Labs, which operates WazirX in India. In July last year, the crypto exchange came under a cyber attack, resulting in the theft of $235 million worth of digital assets.
Following this incident, Zettai filed an application with the Singapore HC for a moratorium under Section 64 of the Insolvency, Restructuring and Dissolution Act, 2018 to provide breathing space and proceed to restructure its liabilities to address users’ concerns about cryptocurrency balances and recovery.
The court granted a 16-week moratorium to the company to carry out the restructuring process and permitted Zettai to vary the scheme meeting process to streamline the process and facilitate the participation of more users.
Under the approved scheme, a structured approach will be established to reorganise the liabilities with WazirX to optimise returns for all platform users affected by the cyberattack.
Rebalances platform liquidity assets will be distributed in the form of tokens to scheme creditors or affected users within ten business days.
The company will also issue recover tokens and plans to strategically reactivate the WazirX platform with new features it had previously announced, including launching a decentralised exchange.
WazirX has also pledged to distribute available net profits generated during the 36 months to fund recovery token purchases.
“I thank the court for granting us leave to convene the scheme meeting and for acknowledging our efforts. We are leaving no stone unturned to facilitate recovery to the users at the earliest and appeal to the users to vote in favour of the scheme," said Nischal Shetty, Founder of WazirX.
The creditors’ meeting will be held online soon followed by electronic voting of the scheme, the company confirmed.
The high court’s decision comes days after WazirX said it has successfully frozen the first tranche of assets, worth about $3 million USDT that were stolen in the cyberattack.
Edited by Suman Singh