WazirX Seeks Creditor Meeting Following Singapore Court Approval

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As a seasoned analyst with extensive experience in the volatile world of cryptocurrency exchanges, I must say that Zettai’s recent move to convene a meeting of creditors is a commendable step towards rebuilding trust and ensuring fair compensation for its users. The proposed Scheme of Arrangement seems well-thought-out, with sufficient assets to cover liabilities and a clear plan for distributing funds.

Zettai, the superior organization behind Zanmai Labs (the company that runs the well-known Indian cryptocurrency exchange WazirX), is moving forward in the healing process by applying to the Singapore High Court for authorization to gather their creditors for a meeting.

On December 6, 2024, the submitted application marks a crucial juncture for the company, aiming to restore credibility and guarantee equitable remuneration for its clientele.

Should it be granted, the meeting will unite WazirX users classified as creditors under a specific plan, for discussion about a proposed Restructuring Plan. This plan is designed to address outstanding claims and distribute the company’s current liquid assets, worth approximately 566.39 million USDT as of December 5 – an amount more than enough to cover all recorded liabilities from July 18.

The suggested strategy involves sharing out these funds according to each user’s token holdings, providing them with a complete recovery of their dollar-equivalent entitlements and possible extra profits. The first payments should be made within 10 working days after the plan becomes active, assuming approval from creditors and the High Court.

This action demonstrates a robust response to the significant cyberattack in July, during which hackers stole more than $230 million worth of assets from the platform. Zettai acted promptly, submitting a police report (First Information Report or FIR) in New Delhi and collaborating with law enforcement, resulting in an arrest and subsequent charges.

The robust upward trend in the cryptocurrency market, with Bitcoin reaching $100,000, bolsters the confidence investors have in the system. Nischal Shetty, founder of WazirX, expressed this commitment to creditors during difficult times by stating, “The restructuring plan underscores our steadfast dedication to creditors.

If you vote ‘yes’ for the Scheme of Arrangement, you’re giving us the authority to focus on making distributions promptly and establishing a structure that secures our long-term sustainability,” he emphasized.

As an analyst, I’m observing that Zettai is actively pursuing approval for their Scheme of Arrangement, a step taken after they sought a moratorium under Singapore’s Insolvency, Restructuring, and Dissolution Act earlier. This moratorium has been crucial in granting the company the necessary time to develop its recovery strategy.

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2024-12-10 12:20