WazirX files application for creditors’ meeting to present and vote on restructuring scheme

WazirX’s crypto operating entity Zettai has filed an application with the Singapore High Court so that it can take the restructuring process forward.

WazirX’s crypto operating entity Zettai said that it had filed an application with the Singapore High Court in order to carry out a creditors’ meeting where it could present and conduct a vote on the post-hack restructuring scheme.

WazirX claimed that its scheme of arrangement was aimed at providing quick and fair recoveries. If approved, initial distributions could take place within 10 business days (per WazirX’s definition of the same in the proposal) after the scheme becomes effective.

“Under the Scheme the net available liquid funds (after accounting for, among others, professional fees and other operational costs) which currently represent over 100% of the USD value of liabilities as on 18th July 2024, will be disbursed to Scheme Creditors in the proportionate token balances held in their portfolio, ensuring they benefit from the ongoing crypto bull run,” noted WazirX in a press release, adding that recovery tokens would also be given to users.

The scheme will have to be “approved by the requisite majority of the Scheme Creditors” and sanctioned by the court.

WazirX appeared to encourage investors to support the scheme for a more timely distribution of assets. It said that if the scheme was not approved, users would likely have to wait for the WazirX ownership dispute to be solved, which could result in “potentially extended timelines.”

WazirX and the international crypto exchange Binance are caught in a legal dispute over whether or not the latter company formally acquired the former. WazirX CEO Nischal Shetty said this was one reason why the company could not compensate users with its own profits after a multi-signature wallet hack on July that cost the platform over $230 million.

However, Binance refuted this claim and urged WazirX to take responsibility.