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WazirX Seeks Court Approval for Restructuring After $230 Million Hack
WazirX is seeking court approval for a major restructuring following a staggering $230 million hack. Discover the implications for the cryptocurrency exchange and how it plans to recover and enhance security measures in this critical moment.
WazirX Requests Restructuring Amid $230 Million Hack Loss
Indian cryptocurrency exchange WazirX has formally approached the Singapore High Court, seeking a six-month period to restructure its liabilities, as announced on Wednesday. This request comes in the wake of a significant security breach that resulted in a loss of approximately $230 million in July.
The filing triggers an automatic moratorium of 30 days, providing temporary relief from legal actions. However, a date for the hearing, during which the court will determine whether to grant this moratorium, has not yet been set.
Co-founder Nischal Shetty has submitted an affidavit in support of this application, representing Zettai Pte, a company incorporated in Singapore. Notably, Zanmai India, a subsidiary of Zettai, is responsible for the operations of WazirX. Currently, there is an ongoing dispute with Binance regarding the ownership of the platform.
In a recent blog post, WazirX mentioned that due to “confidentiality obligations,” they may not be able to disclose specific details about the ongoing dispute. The affidavit requests the court to ensure that:
- No resolution shall be passed for a winding up of Zettai;
- No execution, distress, or any other legal process may be initiated, continued, or imposed against any property of Zettai without the court’s permission.
This moratorium aims to provide Zettai with much-needed breathing space as it moves forward with the restructuring process. The exchange stated that this is “the most efficient way to address users’ cryptocurrency balances on the platform and facilitate recovery for users.” Under the proposed restructuring plan, the repercussions of the cyberattack will be allocated on a pro-rata basis among users who are classified equally as unsecured creditors. Consequently, users will receive a share of the available token assets linked to the platform, proportional to their respective unsecured claims related to their account balances.