Zettai, Singapore’s Wazirx parent company, proposed a financial restructuring plan to the Singapore High Court this week. The court reviewed and approved the proposal of Wozquez users who lost funds in a suspected hacking attack in July 2024, resulting in approximately US$230 million (about Rs 19 billion) of displacement. According to a statement from Wazirx, the court found no evidence of “abuse of procedures,” “misconduct” or “misconduct” in the plan.
Zettai’s court orders suspended for 16 weeks (about four months) to implement the plan. The suspended Zettai and Wazirx are exempt from legal action during the reorganization.
The program will now be expanded to Wazirx creditors. To be implemented, at least 75% of creditors must approve the proposal. If approved, Wazirx will begin the reimbursement process within ten business days of the effective date of the plan.
“The plan includes issuing recycling tokens (RTS) and allocating recycling rates through the RT purchase mechanism. The plan includes strategic reactivates of the Wazirx platform, with new capabilities and launching a decentralized exchange (DEX). The exchange said in a statement : “The available net profit generated during the 36-month (three-year) period will be used to fund RT purchases. ”
The recycling tokens that Wazirx intends to issue will be traded on the market. The exchange believes that affected users have the opportunity to make money by trading these tokens in the market bull run.
The creditors meeting will be scheduled in the coming days, although the exact date has not been disclosed. The meeting will be held online and Zettai will share more details about the process as soon as possible.
Wazirx co-founder Nischal Shetty posted information on the development on X, calling the development a “mile mark” moment.
The Singapore High Court has granted us a leave to convene a programme meeting. This marks another important milestone in the restructuring process as we approach the reboot of the Wazirx platform.
Next step? Prepare for the voting process.
Program creditors will own…
– nischal(shardeum): arrow_up_small: (@nischalshetty) January 23, 2025
Zettai said in December 2024 that liquidation would be Wazirx’s only remaining option if creditors decide to reject the planned restructuring plan. The entity also said at the time that if there was a liquidation situation, Wazirx would first need to resolve its dispute in binary, which could take up to three years or more.
