WazirX parent firm Zettai announced Tuesday that it applied with the Singapore High Court on Dec. 6, seeking permission to hold a meeting with creditors to present a recovery scheme.
The scheme aims for “quick and fair recovery” after WazirX’s $230m crypto theft on July 18.
This scheme, a process under Singapore’s Insolvency, Restructuring and Dissolution Act 2018, helps restructure the company’s debts or liabilities. It offers a framework for creditors to decide on managing or distributing the company’s assets, helping prevent severe outcomes like liquidation.
WazirX Users’ Claims at Stake as Creditors Prepare to Vote on Recovery Scheme
If the court allows Zettai to hold a meeting with its creditors, Zettai can present the proposed scheme for voting. The scheme will take effect only after gaining approval from the required majority of creditors and securing the Singapore court’s sanction.
Update on Scheme Filing
We are set to file by the end of this week an application with the Singapore Court for permission to convene a meeting of creditors to present the Company’s proposed Scheme of Arrangement for voting. This marks a key step in helping Scheme Creditors… pic.twitter.com/eN7o3RKeHn— WazirX: India Ka Bitcoin Exchange (@WazirXIndia) December 5, 2024
Creditors will then vote on the proposed scheme, deciding the potential recovery amount for WazirX users’ claims.
Zettai said it is confident in proposing the scheme after the Singapore court granted a four-month moratorium on Sept. 26, which allowed the firm to focus on resolution and recovery.
WazirX Parent Assures Creditors Full USD Claim Recovery with Liquid Asset Surplus
As of July 18, total claims stand at 546.47M USDT, while liquid assets are valued at 566.39M USDT. With liquid assets exceeding total claims in USD terms as of that date, creditors are well-positioned for full recovery of their USD-equivalent claims, with potential for additional returns, the company said.
Under the proposed scheme, Zettai will distribute liquid assets to creditors within 10 business days of the scheme taking effect.
Additionally, Zettai will issue “Recovery Tokens” to creditors, redeemable as part of the platform’s recovery efforts. The company is collaborating with forensic specialists and authorities to recover stolen assets, which will fund the redemption of these tokens, offering further recovery opportunities.
Further, Zettai pledged to provide updates every four months on asset recovery progress and financial health.
Looking ahead, Zettai plans to launch a decentralized exchange (DEX), with profits from the DEX contributing to the recovery pool.
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