Delhi HC Orders WazirX Parent To Disclose Binance Acquisition Papers

The Delhi High Court has ordered WazirX’s Singapore-based parent entity Zettai Pte Ltd to produce its acquisition documents with Binance and disclose restructuring scheme details.

The order dated August 5 mentioned that the next hearing related to this case is scheduled for August 26.

“Zettai is also directed to file the ‘restructuring scheme’, for which sanction has been sought from the Singapore High Court,” the order added.

WazirX was supposedly acquired by Binance in November 2019. However, Binance CEO Changpeng Zhao said in 2022 that his company did not acquire WazirX. Zhao’s statement came after the Enforcement Directorate froze WazirX’s assets worth INR 64.67 Cr in connection with a money laundering case.  

In July last year, WazirX was hit by a major security breach resulting in a loss of approximately $234.9 Mn.

The Delhi HC’s order comes on the back of Singapore High Court recently rejecting a proposed restructuring plan submitted by Zettai. The company submitted the plan in November last year after the cyberattack.

While WazirX is battling its case, the company also incorporated an entity in Panama by the name of Zensui Corporation, to continue with its crypto operations without a mandatory Singapore licence.

Several reports suggest that the court’s decision to reject the company’s restructuring plan was prompted by WazirX’s failure to disclose details about its Panama-based entity during the restructuring process.

It is pertinent to note that the company initially got approval from the Singapore HC to gather a scheme meeting with the users of the cryptocurrency exchange. 

As per the proposed scheme, WazirX was going to liquid assets worth $284 Mn and issue recovery tokens to all its users upon approval and sanction of the scheme.

While a majority of creditors approved the restructuring scheme in April, the company required final clearance from the Singapore High Court to implement the plan and restart operations.