TLDR
- WazirX has secured approval from the Singapore High Court for its debt restructuring plan.
- The plan aims to redistribute assets in line with Singapore’s Insolvency Act fairly.
- Over 95% of WazirX’s creditors voted in favor of the updated debt restructuring proposal.
- WazirX plans to begin token distributions within 10 business days of the scheme’s approval.
- Users can expect to recover approximately 85% of their account balances based on the hack’s valuations.
WazirX has secured approval for its debt restructuring plan from the Singapore High Court. This marks a significant milestone in the platform’s recovery following a major hacking incident. CEO Nischal Shetty confirmed the approval on Monday, signaling a positive step toward restoring operations.
Court Approval Paves the Way for WazirX’s Recovery
The court’s approval comes after months of revisions to WazirX’s original plan. In August, over 95% of WazirX’s creditors voted in favor of the updated debt restructuring scheme. This plan addresses claims from more than 149,000 users, with total claims amounting to $206.9 million.
The plan now moves forward with the aim to redistribute assets fairly, in line with Singapore’s Insolvency, Restructuring, and Dissolution Act of 2018. WazirX chose a court-supervised Scheme of Arrangement over liquidation. This decision aims to avoid years of delays, as liquidation could have postponed recoveries until 2030 or beyond.
According to WazirX filings, the first round of token distributions is expected to begin within 10 business days of the scheme’s approval. Users can expect to recover approximately 85% of their account balances, based on valuations from the date of the hack. The recovery plan should also include the gradual reopening of trading services.
While the approval marks a turning point, the road to this stage was not without challenges. Initially, the court rejected WazirX’s proposal due to concerns over token distributions. However, WazirX revised its plan to route repayments through its Indian entity, Zanmai Labs, which is registered with India’s Financial Intelligence Unit.
Role of Zettai Pte Ltd in the Restructuring Process
Zettai Pte Ltd, WazirX’s Singapore-based parent company, played a crucial role in the restructuring process. Acquired by Binance in 2019, Zettai retained custody of WazirX’s crypto assets and liabilities. It also helped coordinate the legal strategy to protect WazirX from creditor actions across jurisdictions.
Following the hack, Zettai sought a moratorium from the Singapore High Court to consolidate the restructuring process under Singaporean law. This ensured uniform treatment for both Indian and international users, reducing the risk of conflicting legal claims.
WazirX’s court-approved plan now offers a clear path to recovery. As trading and withdrawals resume, users can finally expect to see the results of the restructuring efforts.
