Zettai Seeks Singapore Court Approval for Comprehensive Recovery Scheme for WazirX Users

Zettai Pte Ltd has approached the Singapore High Court to seek approval for a restructuring plan. This plan aims to help users recover over USD 230 million stolen from its cryptocurrency exchange, WazirX. The application, filed on December 6, 2024, requests permission to hold a meeting with creditors to present and vote on the proposed scheme. This initiative is designed to ensure quick and fair recoveries for unsecured creditors.

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The scheme intends to provide WazirX Scheme Creditors, who are unsecured contingent creditors of Zettai, with expedited recovery. The company believes this will improve transparency, restore trust, and stabilise the exchange. Nischal Shetty, founder of WazirX, highlighted the company's commitment to resolving creditor claims swiftly. He urged creditors to support the scheme for timely distributions and operational stability.

Proposed Scheme Details

If the Singapore Court approves, Zettai can present the scheme to its creditors for a vote. The scheme will be effective once it gains approval from the required majority of creditors and receives court sanction. Upon approval, initial payments will be made within 10 business days after the plan's activation. The net available liquid funds will be distributed proportionately among Scheme Creditors based on their token balances.

The funds available after accounting for professional fees and operational costs exceed 100% of liabilities as of July 18, 2024. This ensures that Scheme Creditors benefit from the ongoing crypto market surge. Additionally, they will receive recovery tokens for further recoveries under the scheme. Zettai believes that creditors are well-positioned to not only recover their capital but also gain from potential increases in token distributions.

Financial Overview

As of December 5, Zettai holds liquid assets valued at 566.38 million USDT against total claims of 546.47 million USDT as of July 18, 2024. This financial position supports the proposed recovery plan for creditors. WazirX provides services that allow users to buy, sell, and trade various cryptocurrencies.

In July 2024, Zettai Pte faced a significant theft incident where over USD 230 million was stolen from its platform. This event resulted in substantial financial losses for many users, who are now considered creditors. The WazirX platform boasts over 16 million registered users, with more than 4 million maintaining cryptocurrency balances in their accounts.

The restructuring plan aims to address these losses by ensuring fair and swift recovery for affected users while leveraging current market conditions for potential gains.