WazirX parent Zettai files application in Singapore High Court to present recovery scheme

Representative image

Hacked crypto exchange WazirX’s parent Zettai has filed a petition with the Singapore Hight Court seeking leave to convene a meeting of its creditors to present a restructuring scheme and voting for the proposed arrangement, in a bid to expedite funds recovery to users.

The application filed on December 6 outlined a structured roadmap for recovery, and if approved, will include initial distributions of available liquid assets within 10 Business Days (as defined in the proposed Scheme).

“Under the Scheme the net available liquid funds (after accounting for, among others, professional fees and other operational costs) which currently represent over 100% of the USD value of liabilities as on 18th July 2024, will be disbursed to Scheme Creditors in the proportionate token balances held in their portfolio, ensuring they benefit from the ongoing crypto bull run,” the company said in statement.

At present, the exchange has total claims of around $546.47 million in USDT and liquid assets worth $566.38 million USDT, following the $230-million hack into one of its multisig wallets where WazirX lost nearly 45 percent of its crypto assets.

Recovery proposal

The proposed recovery scheme involves distribution of available liquid assets within 10 business days letting creditors get a portion of their validated claims, recovery of tokens based on platform’s aggressive effort plans, and creating new revenue streams through decentralised exchange.

The scheme will only come into effect once 75 percent of Scheme Creditors by value of Scheme Creditors are present and voting.

Nischal Shetty, Founder of WazirX. “By voting 'yes' in favour of the Scheme of Arrangement, creditors will empower us to prioritize timely distributions and create an operational framework that ensures long-term stability.”

He added that WazirX aims to resolve this process within months unlike other global exchanges which took years for recoveries.

Also read: Decentralised exchange, profit sharing, tokenisation – WazirX chalks out fund recovery strategy after $230-million hack