Zettai, a Singapore-registered entity responsible for India’s Wazirx Crypto exchange, is seeking to interact with creditors following a July hack, resulting in losses of more than US$230 million (approximately Rs 19,000 crore). In response to this incident, Zettai began to develop a financial restructuring plan under the supervision of the Singapore High Court. Zettai announced in a recent update that it has applied to the court to meet with its creditors meeting, during which it plans to propose a proposed restructuring plan for its approval.
Details of the restructuring plan
Wazirx announced in a press release Tuesday, December 10 that the plan was filed in court on December 6, 2024.
The exchange stressed in its statement that the plan “determines creditors’ priorities by providing a structured recovery roadmap. If the court allows Zettai to hold a meeting of its planned creditors, the proposed plan can be proposed for a vote.”
If approved, the program may initiate initial fund allocation within 10 business days.
“Under the plan, as of July 18, 2024, available liquid funds currently account for more than 100% of the value of the liability will be paid to the plan creditors with the token balance held in their portfolio to ensure they are from the ongoing The beneficiary of cryptocurrencies is bull running,” the exchange explained.
According to its own data, the total claims against Wazirx were US$546.47 million (approximately Rs 46.37 crore) as of July 18. As of December 5, the value of current assets under the control of the exchange was US$566,385,285 million (approximately Rs 48,06 crore).
Under the proposed plan, Wazirx plans to issue recycling tokens to its creditors. Zettai stressed in his statement that in the ongoing bull market, Bitcoin is trading at or above $100,000 (approximately Rs 84.8 lakh) – a scholar has the potential to not only recover its capital, but also to realize profits.
At present, detailed details of the plan have not been made public. Wazirx will require at least 75% of creditors to approve the plan. Only after obtaining this majority will Zettai sign formal approval to the Singapore High Court. Voting will be conducted through third-party independent platforms and verified by external examiners.
Hackers that modify Wazirx
On July 18, a multi-person Wazirx wallet managed by Liminal Cancone was hacked for $230 million. Both Wazirx and Liminal conducted internal investigations and denied any internal errors that could lead to the breach. Users who lost funds in hackers criticized Wazirx for delaying proposals for restructuring.
Back in November, Wazirx founder Nischal Shetty said he would build India’s largest decentralized exchange in the next 12 months despite facing serious criticism from the country’s cryptocurrency community.
At the same time, the hacker responsible for the incident has not been identified.
