The Singapore High Court has approved Zettai Pte Ltd’s request to convene a meeting with creditors of the crypto exchange WazirX, allowing the company to present its restructuring proposal.
The decision is a critical step in Zettai’s efforts to address debts and recover from the $230 million hack of WazirX linked to North Korea’s Lazarus Group.
Court approval
The court also granted a 16-week moratorium, shielding Zettai from legal actions while it seeks to implement the plan. Creditors will be invited to review the proposed Scheme of Arrangement, which outlines how assets will be distributed and how the platform can resume operations.
The court further permitted adjustments to the meeting process to encourage broader participation among WazirX users, many of whom have remained inactive.
Allegations from some creditors that Zettai was complicit in the cyberattack were dismissed due to a lack of evidence. Investigations by the US, Japan, and South Korea identified the Lazarus Group as responsible for the breach, a conclusion the court acknowledged in its ruling.
Zettai has emphasized its commitment to transparency and pledged to expedite recoveries for creditors.
Reorganization plan
WazirX founder Nischal Shetty expressed optimism about the proposal, stating that it offers the best chance for creditors to regain their assets and for the platform to rebuild.
The plan involves reorganizing debts, distributing liquid assets to creditors, and issuing recovery tokens designed to facilitate further asset retrieval. It also includes relaunching the WazirX platform with enhanced features, such as a decentralized exchange, and allocating future profits toward creditor recoveries over the next three years.
The creditors’ meeting will be held online, with details of the voting process to be shared in the coming weeks. Zettai has urged creditors to support the scheme, noting that it offers a more favorable outcome than alternative options.
Analysts see Zettai’s efforts as a test of Singapore’s legal framework for resolving complex financial disputes in the digital asset space. A successful restructuring could serve as a model for other companies navigating similar crises.
