Key Takeaways
- The next hearing in the WazirX restructuring is scheduled for Oct. 13.
- At the hearing, judges will review the filings by WazirX regarding creditors.
- WazirX CEO Nischal Shetty claimed redistribution would begin 10 days after approval.
The Singapore High Court has scheduled the WazirX restructuring hearing for 13 October at 7:30 AM IST.
Indian crypto exchange WazirX, which was hacked in July 2024, is currently undergoing a second round of restructuring after the Singapore court rejected its first restructuring plan.
No Relief For Hack Victims This Diwali
The restructuring hearing on October 13 means that hack victims in India won’t receive their share of crypto assets this Diwali, an auspicious festival associated with prosperity and happiness.
WazirX lost over $230 million in the July 2024 hack, resulting in a 55% decline in net assets. Following the hack, the exchange underwent a restructuring process in Singapore, as the parent company operating WazirX, Zettai, is incorporated in Singapore.
The parent company, Zettai Pte Ltd, secured a moratorium to pause creditor actions and proposed a “Scheme of Arrangement” for fair repayment and platform restart.
Even though creditors overwhelmingly accepted the plan with more than 93% approval, as claimed by WazirX, the court has mandated several rounds of submissions, revisions, and hearings.
These amendments and hearings are primarily motivated by concerns regarding transparency, asset recovery, and legal compliance. Although the court had previously rejected the exchange’s submission, the scheme had received more than 95% approval.
What to Expect From the Oct. 13 Hearing?
Based on WazirX’s latest update and court directives, the hearing on Oct. 13 is a virtual sanction hearing for the amended Scheme of Arrangement. It was rescheduled from October 9 due to the unavailability of WazirX’s legal counsel.
The court will review the evidence, reply documents, and final affidavits from Zettai, creditors, and other parties. This document contains the rebalancing formula for user payouts, evidence of creditor consent, and details of recovery activities, including tracking stolen funds.
Zettai’s attorneys will make additional arguments regarding the revised plan’s fairness and executability. Objectors or creditors may reply virtually.
Another interesting development is that Binance has recently joined the discussions, potentially influencing cross-exchange liabilities or asset tracing discussions.
Binance and WazirX share a long history, marked by an acquisition deal that couldn’t be solidified after three years of negotiations.
The process follows Singapore’s Companies Act, where the court scrutinizes schemes for fairness, creditor support, and feasibility before sanctioning them.
Although there is no foreseeable timeline for asset redistribution, WazirX has stated that it will initiate redistribution within 10 business days of approval.
Prashant Jha is a seasoned crypto journalist based in Delhi, India, with a Bachelor’s Degree in Computer Science Engineering. Passionate about the evolving world of blockchain and cryptocurrencies, he has been a dedicated voice in the industry since 2018. Prashant’s expertise lies in regulatory reporting, where he unravels complex legal and financial developments with clarity and precision. Before joining CCN in 2024, he honed his craft at Cointelegraph, establishing himself as a trusted name in crypto journalism.
His coverage spans major industry events, including the high-profile collapses of FTX, Three Arrows Capital (3AC), and LUNA, offering readers insightful analyses of their regulatory and market implications. Prashant’s technical background enables him to bridge the gap between intricate blockchain technology and its real-world applications, making his work accessible to novices and experts.
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