Fintech
Travel Tech
Electric Vehicle
Health Tech
Edtech
IT
Logistics
Retail
Ecommerce
Startup Ecosystem
Enterprise Tech
Clean Tech
Consumer Internet
Agritech
Singapore High Court has permitted WazirX's parent Zettai to convene a scheme meeting with the users of the cryptocurrency exchange
The decision paves the way for the exchange, which lost crypto assets worth about $235 Mn last year due to a security breach
As part of the proposed scheme, WazirX will release liquid assets worth $284 Mn and issue recovery tokens to all its users
Singapore High Court has permitted WazirX’s parent Zettai to convene a scheme meeting with the users of the cryptocurrency exchange.
The decision paves the way for the exchange, which lost crypto assets worth about $235 Mn last year due to a security breach, to undertake a restructuring exercise and revive its operations.
As part of the proposed scheme, WazirX will release liquid assets worth $284 Mn and issue recovery tokens to all its users upon approval and sanction of the scheme.
Once the liabilities are rebalanced, the rebalanced liquid assets will be distributed in tokens to scheme creditors within 10 business days of the effective scheme date.
The plan also includes the reactivation of the WazirX platform, with the launch of a decentralised exchange and new capabilities.
Moreover, the profits generated in the 36-month period after reactivation will be used to fund the recovery token purchases.
In a statement, WazirX said that the court has given a 16-week moratorium to Zettai for the restructuring process.
Further, the court said that there was no abuse of process. It also found no evidence of wrongdoing that suggests that the platform itself had orchestrated the cyberattack, the statement added.
Notably, last year in July, the crypto exchange suffered the infamous security breach in one of its multi-sig wallets, resulting in loss of crypto assets amounting to $235 Mn. In the attack, more than 4.4 Mn Indian users were affected, who are yet to fully recover the funds.
Last week, the company said that it froze the stolen assets worth $3 Mn as part of its ongoing recovery efforts.
Meanwhile, earlier this month, the US, Japan and South Korea issued a joint statement blaming North Korea’s infamous hacking group Lazarus for the crypto heist.
WazirX held about $565.7 Mn in digital assets as of December 2024, while the users are seeking damages worth about $546 Mn.
Recently, crypto unicorn CoinSwitch launched an INR 600 Cr recovery programme to aid WazirX hack victims.
WazirX’s crypto heist is also being investigated by multiple government agencies such as the Financial Intelligence Unit, Intelligence Bureau, and the Indian Computer Emergency Response Team (CERT-In).
