- Zettai proposes Scheme to ensure swift recovery for WazirX creditors.
- Liquid assets exceed claims; Recovery Tokens offer potential additional benefits.
Zettai Pte Ltd, the parent company of the embattled cryptocurrency exchange WazirX, has filed an application with the Singapore High Court on December 6, 2024. The filing seeks approval to convene a meeting of creditors to vote on a proposed Scheme of Arrangement aimed at resolving the aftermath of a massive cyberattack earlier this year.
The proposed Scheme, submitted under the Companies Act 1967, focuses on providing swift and fair recovery for WazirX’s unsecured creditors, or “Scheme Creditors.” If approved by a requisite majority of creditors and sanctioned by the Court, the Scheme will initiate structured distributions from liquid assets exceeding the platform’s liabilities.
The July 18, 2024, hack resulted in the theft of over $230 million (₹1,900 crore), prompting Zettai to secure a four-month moratorium from the Singapore High Court in September. This reprieve enabled the company to focus on recovery and restructuring efforts. Liquid assets, currently valued at over $566 million, surpass the $546 million in claims, offering a promising recovery outlook for creditors.
Moreover, the Scheme also includes the issuance of Recovery Tokens, enabling creditors to benefit from future recoveries. Zettai has committed to ongoing asset recovery efforts in collaboration with authorities and forensic specialists. The company further plans to launch a decentralized exchange (DEX), with its profits contributing to the recovery pool.
Voting On Scheme
Voting on the Scheme will take place via an independent platform, with results verified by third-party scrutineers. Approval requires a majority in number and at least 75% in value of creditors present and voting. If the Scheme is rejected, creditors may face prolonged delays tied to unresolved ownership disputes over the WazirX platform.
Meanwhile, the WazirX founder, addressing speculation about bankruptcy, reiterated the company’s commitment to recovery and transparency. “This filing represents one of the fastest turnarounds for such a complex issue. We’re focused on recovering stolen assets and rebuilding trust,” he stated on X.
Highlighted News Of The Day
BlackRock Bitcoin ETF Defies Market Dip, Secures $358M in Net Inflows
