Zettai Pte Ltd, the Singapore-based majority shareholder in WazirX, has filed for a moratorium to restructure its finances. A moratorium can be interpreted as a legal authorization for debtors to delay payments. Zettai’s application, filed in a Singapore court, is part of the company’s attempt to buy some time for WazirX to restructure its finances following the recent hacking attack on one of the cryptocurrency exchange’s multi-sig wallets, which led to the theft of over $230 million (approximately Rs. 1,931 crore).
WazirX estimates that Zettai may need at least six months to formulate a plan, which, if approved by creditors and ratified by the Singapore court, “would be legally binding on all relevant parties, including Zettai.” The platform needs this time to finalize the terms of this financial restructuring plan.
In a official statement The embattled Indian exchange said on Wednesday that the moratorium will provide a breather while Zettai moves forward with a restructuring plan to restore users’ cryptocurrency balances and facilitate the recovery of funds they may have lost in the hack.
“An automatic moratorium of 30 days from the filing of the application (i.e. 27 August 2024) will arise and the Singapore Court will determine whether the requested moratorium will be granted at a hearing on the application (and the duration of the moratorium, if granted),” the company said“If restructuring is not preferred, resolving crypto balances through alternative routes may pose undefined risks and timelines.”
Nischal Shetty, co-founder of WazirX, is the director of Zettai. In an affidavit shared with clients and reviewed by Gadgets360, Shetty seeks to assure WazirX users that the Singapore-based entity will not cease operations in the midst of this ongoing process.
According to the affidavit, Zettai was incorporated in Singapore in January 2019 under the laws of Singapore. On September 2, the WazirX team and the company’s advisors will participate in a townhall session to explain the details of the latest development. The exchange claims that the plan that Zettai will formulate in the coming days will ensure a fair and creditor-approved approach to the distribution of token assets.
Meanwhile, WazirX opened INR withdrawals for users in need earlier this week. For now, WazirX customers can only withdraw and access 66 percent of their funds, while the remaining 34 percent remains frozen due to ongoing investigations into the incident.
