January 27, 2025 – In a significant development, the Singapore High Court has granted Zettai Pte Ltd, the parent company of WazirX, permission to convene a creditors’ meeting to discuss a Scheme of Arrangement aimed at expediting the recovery of USD 230 million in stolen assets.
This decision marks a critical step forward in Zettai’s ongoing efforts to distribute recovered assets to users and revive the operations of WazirX.
Court Grants Moratorium
The court has also approved a 16-week moratorium, providing Zettai with the necessary time and legal protection to implement the restructuring plan. This moratorium ensures that the company can focus on its recovery and distribution process without external interference.
Creditors’ Meeting Details
The creditors’ meeting will be held online, with voting on the proposed Scheme of Arrangement conducted electronically. Zettai has assured that details of the process will be communicated to creditors shortly.
This milestone reflects Zettai’s commitment to resolving the fallout from the hacking incident and rebuilding trust among its users while laying the groundwork for the platform’s revival.
For further updates, creditors and stakeholders are advised to stay tuned to Zettai’s official channels
WazirX Restructuring Plan Gets Green Signal from Singapore High Court: One Step Closer to Revival
As part of the restructuring plan for the $230 million hacking case, the Singapore High Court has sanctioned Zettai Pte Ltd’s Scheme of Arrangement. This is a structured plan for the recovery and redistribution of stolen assets to creditors and users of WazirX, and also a way to revive the platform.
Key Highlights
- 16-Week Moratorium Sanctioned
The Court has granted Zettai a 16-week legal moratorium to implement the restructuring process. This provides legal protection and time to carry out the approved plan effectively.
- Court Ruling on Allegations
The Court found no evidence of abuse of process, wrongdoing, or misconduct by Zettai, countering allegations from certain users suggesting the company orchestrated the cyberattack.
The North Korean Lazarus Group is the group found responsible for hacking, according to a joint statement from the US, Japan, and South Korea governments.
The court recognized a “silent majority” of users, who would more likely support the proposal by Zettai given the vocal resistance from some creditors.
- Simplify Creditor Engagement
The Court supported modifications to the procedural process in arranging a meeting of creditors to hold the meeting online, then through electronic voting. Zettai will inform creditors of the specifics.
Components of the Approved Scheme Debt Restructure Plan Reorganizes WazirX’s liabilities and optimizes returns for all users.
Token Distribution Liquid assets rebalanced and distributed as tokens to scheme creditors within 10 business days from date of effect. Recovery Token Implementation
A dedicated recovery token RT system will be developed that can be involved with asset recovery through the buy mechanisms of the RT.
System Restart
WazirX will be restarted with upgraded features to reopen a decentralized platform and regain user trust and functionalities.
Profit-Sharing Structure
Net profits that can be accommodated for 36 months will be used for funding the recovery token system.
So, what’s next?
Creditor Meetings: The plan requires approval through an online meeting and electronic voting process. Zettai will soon communicate the details of the meeting to the creditors.
Implementation of the Scheme: After the approval, Zettai will start distributing the tokens and restart the WazirX platform as part of its recovery roadmap.
