Wazirx’s Singapore-based parent company Zetai submitted a financial restructuring plan in the Singapore High Court this week. The court reviewed and approved the proposal for Wazirx users who lost funds during an alleged hack in July 2024, which resulted in the disgorgement of about $230 million (roughly Rs. 1,900 crores). According to a statement from Wazirx, the court found no evidence of “abuse of process,” “malpractice,” or “wrongdoing” in the scheme.
Zettai has a court-ordered 16-weeks (about four months) to implement the plan. The moratorium protects Zettai and Wazirx from legal action while they are in the process of executing the restructuring step-by-step.
The scheme will now reach 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 effective date of the plan.
“The scheme involves the issuance of Recovery Tokens (RTS) and distribution of recovery through the RT purchase mechanism. Plans include a strategic reactivation of the WAZIRX platform, including new capabilities and the launch of a decentralized exchange (DEX). The net profit generated during the period of 36 months (three years) will be used to fund the RT purchase,” the exchange said. Said In his statement.
The recovery token that Wazirx intends to issue will be traditional in the market. The exchange believes that affected users have a chance to make money by trading these tokens in the market bull run.
A creditors’ meeting will be scheduled in the coming days, although the exact date has not yet been disclosed. The meeting will be held online, with Zettai set to share more details about the process soon.
Wazirx co-founder Nischal Shetty posted about the development on X, calling the development a ‘milestone’ moment.
The Singapore High Court has granted us leave to convene a planning meeting. This marks another important milestone in the restructuring process as we move closer to restarting the Wazirx platform.
Next steps? Prepare for the voting process.
The scheme creditors have…
– nischal (shardeum): arrow_up_small: (@nischalshetty) January 23, 2025
In December 2024, Zettai said that if creditors decide to reject the planned restructuring plan, liquidation would be the only remaining option for Wazirx. At the time the entity also said that if a liquidation situation arose, Wazirx would first need to resolve its dispute with Binance and that could take up to three years or more.
