Zettai, the parent company of Zanmai Labs, which operates India’s prominent cryptocurrency exchange WazirX, has taken a significant step toward recovery by filing for permission with the Singapore High Court to convene a meeting of its creditors.
The application, submitted on December 6, 2024, represents a pivotal moment for the company as it seeks to rebuild trust and ensure fair compensation for its users.
If approved, the meeting will bring together WazirX users, categorized as scheme creditors, to deliberate on a proposed Scheme of Arrangement. This restructuring scheme aims to resolve claims and distribute the company’s net available liquid assets, which, as of December 5, stand at an impressive 566.39 million USDT—sufficient to cover over 100% of liabilities recorded on July 18.
The proposed plan includes distributing these funds proportionally to users based on their token balances, offering them full recovery of their USD-equivalent claims and potential additional returns. Initial payouts are expected within 10 business days of the scheme’s effective date, contingent upon approval by the creditors and the High Court.
This move reflects a strong recovery effort following the massive cyberattack in July, which saw hackers abscond with over $230 million in assets from the platform. Zettai responded swiftly, filing a First Information Report (FIR) in New Delhi and cooperating with authorities, leading to an arrest and subsequent charges.
The crypto market’s current bullish momentum—marked by Bitcoin surpassing $100,000—further strengthens the optimism surrounding the scheme. “The restructuring scheme reflects our unwavering commitment to creditors during this challenging time,” said Nischal Shetty, Founder of WazirX.
“By voting ‘yes’ in favour of the Scheme of Arrangement, creditors will empower us to prioritise timely distribution and create an operational framework that ensures long-term stability,” he added.
Zettai’s efforts to secure approval for the Scheme of Arrangement follow its earlier filing for a moratorium under Singapore’s Insolvency, Restructuring, and Dissolution Act. This moratorium provided critical breathing space for the company to formulate its recovery plan.
