WazirX Hack: Zettai Seeks Court Approval to Submit Restructuring Plan for Creditor Vote
Zettai, the Singapore-based company managing the WazirX cryptocurrency exchange in India, is actively working to address the fallout from the massive hack in July, which resulted in losses exceeding $230 million (approximately Rs. 1,900 crore). In the wake of the attack, Zettai has been developing a financial restructuring plan to recover from the crisis, with oversight from the Singapore High Court. The company has now sought court approval to convene a meeting with its creditors, where it will present the proposed restructuring plan for their approval. The scheme aims to prioritize creditors by offering a structured approach for recovery, and if granted permission by the court, it will be put to a vote by the creditors.
Should the court approve the plan, Zettai intends to initiate the first fund distributions within 10 business days. This timeline promises to offer creditors a swift path toward compensation, which could be a crucial step in restoring confidence in the exchange. According to the restructuring plan, the net available liquid funds, which currently cover over 100% of the USD value of liabilities as of July 18, 2024, will be distributed to creditors in proportion to their token holdings. This distribution is designed to ensure that creditors benefit from the recent surge in cryptocurrency market values.
As of July 18, 2024, the total claims against WazirX amounted to $546.47 million (around Rs. 4,637 crore), reflecting the extent of the losses suffered due to the hack. However, Zettai’s liquid assets as of December 5, 2024, had grown to $566,385,206 million (roughly Rs. 4,806 crore), signaling that the exchange has managed to stabilize its financial position in the aftermath of the incident. This growth in liquid assets provides a solid foundation for the restructuring plan, offering hope for creditors to recover their losses.
Zettai’s efforts to resolve the situation through a formal restructuring process demonstrate its commitment to addressing the impact of the hack and ensuring that its creditors are compensated. The outcome of the court’s decision and the subsequent vote by creditors will be pivotal in determining the future of WazirX and its ability to regain stability and trust in the market.
