28-8-2024 (SINGAPORE) WazirX, a prominent Indian cryptocurrency exchange, has approached the Singapore High Court seeking a six-month moratorium to restructure its liabilities following a devastating hack in July that resulted in a loss of $230 million. The move, announced on Wednesday, initiates an automatic 30-day moratorium as the court considers the application.
The exchange, which operates under Zanmai India, a subsidiary of Singapore-incorporated Zettai Pte, is grappling with the aftermath of the cyber attack while simultaneously navigating an ownership dispute with crypto giant Binance. Co-founder Nischal Shetty submitted an affidavit to support the application under Zettai Pte’s name, highlighting the complex corporate structure at play.
In a blog post addressing the situation, WazirX cited confidentiality obligations that prevent the disclosure of certain information relating to the ongoing dispute with Binance. This lack of transparency adds another layer of complexity to an already intricate situation.
The affidavit filed with the Singapore High Court seeks to prevent any winding-up resolutions against Zettai and aims to halt any legal processes or executions against the company’s property without court approval. This move is designed to provide WazirX with a breathing space to progress with its restructuring plans.
WazirX argues that restructuring is “the most efficient way to address users’ cryptocurrency balances on the Platform and facilitate recovery for users.” The proposed restructuring plan involves allocating the impact of the cyberattack proportionally across users, who would be treated as unsecured creditors ranking equally with each other. Under this scheme, users would receive a share of available token assets associated with the platform, proportionate to their share of all users’ unsecured claims for their account balances.
