WazirX Parent Seeks Court Approval for User Asset Recovery

New Delhi, Dec 10 (PTI) Zettai Pte Ltd on Tuesday said it moved the Singapore High Court, seeking nod to a comprehensive restructuring plan for its users to expedite recovery of over USD 230 million assets stolen from its cryptocurrency exchange platform WazirX.

The application, submitted on December 6, 2024, seeks permission to convene a meeting with creditors (users) to present and vote on a proposed scheme aimed at providing quick and fair recoveries for unsecured creditors.

"The scheme is aimed at providing the users of WazirX ('Scheme Creditors'), who are unsecured contingent creditors of Zettai with quick and fair recovery. This move is expected to enhance transparency, rebuild trust, and stabilise the exchange," a company statement said.

WazirX founder Nischal Shetty emphasised the company's dedication to resolving creditor claims swiftly and urged creditors to support the scheme to facilitate timely distributions and operational stability.

If the Singapore Court allows, Zettai will be able to put the proposed scheme before its scheme creditors for a vote.

The scheme will become effective when it is approved by the requisite majority of creditors and is sanctioned by the Singapore court.

If approved, creditors will receive initial payments as defined in the scheme within 10 business days after the plan becomes effective.

"Under the Scheme, the net available liquid funds (after accounting for, among others, professional fees and other operational costs) which currently represent over 100 per cent of the USD value of liabilities as of 18th July 2024, will be disbursed to Scheme Creditors in the proportionate token balances held in their portfolio, ensuring they benefit from the ongoing crypto bull run.

"Scheme Creditors will additionally receive recovery tokens for additional recoveries under the Scheme. With the ongoing crypto surge, Zettai believes that Scheme Creditors are well-positioned to not only recover their capital but also gain from the potential upside in token distributions," the company said.

As of December 5, the company holds liquid assets worth 566.38 million USDT, against total claims of 546.47 million USDT (as on July 18, 2024).

WazirX offers services for users to buy, sell and trade hundreds of different types of cryptocurrencies.

In July 2024, WazirX parent firm Zettai Pte suffered a theft in which over USD 230 million was stolen from its platform. This incident left many users, known as creditors, with substantial financial losses.

The WazirX Platform has over 16 million registered users, of which more than 4 million users have cryptocurrency balances in their accounts maintained with the platform.