Zettai Pte Ltd, which operates the crypto assets of WazirX filed the application on December 6. Along with the company, Nischal Shetty, director of Zettai Pte Ltd (Zettai) has also filed an affidavit before the said court in support of the application. The court is yet to hear the matter.
“The proposed scheme of arrangement, filed in the court under the Companies Act 1967, prioritises creditors by outlining a structured roadmap for recovery. After the court’s permission, Zettai will put the proposed scheme before its creditors for voting. The scheme will only become effective after approval from the majority of the creditors and sanction from the court,” said a spokesperson of WazirX.
“…This affidavit is filed in support of the present application, which broadly, is Zettai’s application to obtain leave of Court to convene a meeting of its creditors for the purposes of considering, and if thought fit, to approve a scheme of
arrangement..” the affidavit filed by Shetty reads. On September 26, the Singapore High Court had granted Zettai a four-month moratorium to focus on resolution, recovery, and restructuring, representing a proactive response from the company to stabilise operations and enable fund
distribution after the theft of over $230 million (RS 1,900 crore) on July 18.
Discover the stories of your interest
Under the scheme, Zettai has proposed initial distributions to its creditors within ten business days after it becomes effective. “Following the restructuring process, the net available liquid funds, currently representing over 100% of the USD value of liabilities as on 18th July, will be disbursed to creditors in the proportionate token balances held in their portfolio, ensuring they benefit from the ongoing crypto bull run. Creditors will additionally receive Recovery Tokens for their outstanding claims. With the ongoing crypto surge, the WazirX creditors are well-positioned to not only recover their capital but also gain from the potential upside in token distributions,” the statement added.As per the court documents, WazirX , a cryptocurrency exchange major in India has over 16 million registered users, of which more than four million users have cryptocurrency balances in their accounts maintained with the platform. The platform offers services for users to buy, sell and trade hundreds of different types of cryptocurrencies. The Platform is accessed via its mobile phone apps or its website browser.
Earlier on 18 July, the platform allegedly fell victim to a cyberattack perpetrated by unknown parties and one of its wallets was emptied of its funds. At the time of the cyberattack, the aforesaid wallet contained cryptocurrency tokens with an aggregate value of around $234 million, representing close to half of the value of cryptocurrency tokens associated with the platform.
