Zettai, the Singapore-based parent company of WazirX, presented a financial restructuring plan to the Singapore High Court this week. The court reviewed and approved the proposal for users of WazirX who lost funds during an alleged hack in July 2024, resulting in a displacement of approximately $230 million (around Rs. 1,900 crore). According to a statement from WazirX, the court found no evidence of “abuse of process,” “misconduct,” or “wrongdoing” in the plan.
Zettai has a court-ordered moratorium of 16-week (around four months) to implement the plan. The moratorium safeguards Zettai and WazirX from legal actions while they are in the process of executing the restructuring step-by-step.
The plan will now extend to WazirX creditors. For implementation, at least 75 percent of creditors must approve the proposal. If approved, WazirX will begin the reimbursement process within ten business days of the scheme’s effective date.
“The scheme includes the issuance of recovery tokens (RTs) and distribution of recoveries through RT purchase mechanisms. Plans include the strategic reactivation of the WazirX platform, featuring new capabilities and the launch of a decentralised exchange (DEX). Available net profits generated during a 36-month (three year) period would be used to fund RT purchases,” the exchange said in its statement.
The recovery tokens that WazirX intends to issue will be tradable in the market. The exchange believes that affected users have a chance to earn money by trading these tokens in the market bull run.
The creditors’ meeting will be scheduled in the coming days, though the exact date has not yet been disclosed. The meeting will be held online, with Zettai set to share further details about the process soon.
WazirX co-founder Nischal Shetty posted about the development on X, calling this development a ‘milestone’ moment.
The Singapore High Court has granted us leave to convene a Scheme Meeting. This marks another significant milestone in the restructuring process as we move closer to restarting the WazirX platform.
The next step? Prepare for the Voting Process.
Scheme Creditors will have the…
— Nischal (Shardeum) :arrow_up_small: (@NischalShetty) January 23, 2025
In December 2024, Zettai had said that if the creditors decide to reject the planned restructuring scheme, liquidation will be the only remaining alternative for WazirX. At the time the entity had also said that if the situation of a liquidation arises, then WazirX will first need to resolve its dispute with Binance and that could take up to three years or more.