WazirX Asks Singapore High Court for 6 Months to Restructure Its Liabilities

As a seasoned crypto investor with a few battle scars and war stories under my belt, I can’t help but feel a mix of emotions upon hearing about WazirX’s recent legal maneuverings. The cyberattack that cost them $230 million is undeniably a massive blow to the industry and its users, including myself.

As a researcher, I am sharing that Indian cryptocurrency exchange WazirX has requested the Singapore High Court for a six-month extension to reorganize its financial obligations, according to an announcement made on Wednesday.

WazirX lost $230 million to a hack in July.

The action triggers a temporary halt, lasting 30 days, known as an automatic standstill period. However, the specific date for the hearing when the court will consider this standstill has not been set yet.

In a legal document (affidavit), Nischal Shetty, one of the co-founders, represented Zettai Pte, a company based in Singapore that oversees the operations of WazirX, which is run by its subsidiary Zanmai India. The ownership of the platform is currently in dispute between Zettai and Binance.

In a recent blog post, WazirX explained that because of certain confidentiality requirements, they might not be allowed to share specific details concerning the ongoing dispute.

The document called an affidavit requests the court to issue a decree that neither the assembly can vote for liquidation of Zettai, nor any legal actions like seizure, distress, or other court procedures may be initiated, carried on, or enforced against any assets owned by Zettai, unless granted permission by the court.

During this pause, Zettai can focus on making necessary changes, specifically optimizing how they manage users’ cryptocurrency holdings on their platform and aiding in the recovery process for those users, as stated.

According to the statement, during the “restructuring” process, the effects from the cyberattack will be divided equally among users who hold similar creditor status, i.e., unsecured creditors. Each user will receive a portion of the available token assets related to the Platform that is proportional to their share of all users’ unsecured claims on their account balances.