Singapore High Court Grants Zettai Pte Ltd Permission for WazirX User Meeting on $230 Million Asset Recovery

The Singapore High Court has allowed Zettai Pte Ltd to organise a meeting with users of its cryptocurrency exchange, WazirX. This meeting will discuss a plan to recover over USD 230 million in stolen assets. The company sought court approval on December 6, 2024, to present this scheme to creditors affected by a cyberattack on WazirX in July last year.

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The court has provided Zettai with a 16-week moratorium. This period offers legal protection and time for restructuring. Additionally, the court approved changes to the meeting process to encourage more user participation. According to a company statement, the creditors' meeting will be held online, with electronic voting on the proposed Scheme of Arrangement.

Scheme Details and Court Findings

Zettai's proposed scheme aims to reorganise WazirX's liabilities for better returns for users. It includes issuing recovery tokens (RTs) and distributing recoveries through RT purchases. Plans also involve reactivating WazirX with new features and launching a decentralised exchange (DEX). The scheme becomes effective once approved by creditors and sanctioned by the Singapore court.

The court found no evidence supporting claims that Zettai orchestrated the cyberattack that resulted in over USD 230 million in losses. If the scheme is approved, initial payments will be made within 10 business days after it takes effect. "I thank the court for granting us leave to convene the scheme meeting and for acknowledging our efforts," said WazirX founder Nischal Shetty.

Financial Status and Past Events

As of December 5, Zettai held liquid assets worth 566.38 million USDT against claims totalling 546.47 million USDT as of July 18, 2024. In July 2024, Zettai suffered a theft where over USD 230 million was stolen from WazirX, affecting many users financially. This incident led to a review of security measures and impacted trust in cryptocurrencies.

Earlier this month, WazirX announced freezing the first tranche of assets stolen during last year's cyberattack, valued at USD 3 million. The crypto heist was India's largest, prompting scrutiny of security protocols in the decentralised cryptocurrency sector.

WazirX previously allowed users to buy, sell, and trade various cryptocurrencies. The upcoming scheme meeting aims to provide quick and fair recoveries for unsecured creditors who lost funds in the attack. Zettai plans to notify creditors soon about the process details for participating in this meeting.