Restructuring Proposal for WazirX Approved by Singapore High Court
The Singapore High Court has given the green light to Zettai Pte Ltd to convene a meeting with creditors of the crypto exchange WazirX. This approval allows Zettai to present its restructuring proposal aimed at addressing debts and recovering from the $230 million hack linked to North Korea’s Lazarus Group.
Critical Step in the Process
- The court approval marks a crucial step in Zettai’s efforts to tackle debts and move forward.
- A 16-week moratorium has been granted to shield Zettai from legal actions while implementing the plan.
- Creditors will have the opportunity to review the proposed Scheme of Arrangement for asset distribution and resumption of operations.
Enhanced Participation
The court has allowed adjustments to the meeting process to encourage wider participation among inactive WazirX users.
Transparency and Commitment
- Allegations of Zettai’s involvement in the cyberattack were dismissed due to lack of evidence.
- Zettai has emphasized transparency and pledged to expedite recoveries for creditors.
Reorganization Plan Details
- Founder Nischal Shetty is optimistic about the proposal, believing it offers the best chance for creditors to recover assets and for the platform to rebuild.
- The plan includes reorganizing debts, distributing liquid assets, and issuing recovery tokens for asset retrieval.
- Enhanced features like a decentralized exchange will be introduced on the relaunched WazirX platform.
- Future profits will be allocated towards creditor recoveries over the next three years.
Creditors’ Meeting and Support
- The online creditors’ meeting will provide details on the voting process in the coming weeks.
- Zettai urges creditors to support the scheme, highlighting its advantages over alternative options.
Implications and Potential
Analysts view Zettai’s restructuring efforts as a test of Singapore’s legal framework for resolving complex financial disputes in the digital asset sector. Success in this restructuring could set a precedent for other companies facing similar challenges.