The Singapore High Court has approved Zettai Pte Ltd’s request to convene a meeting with creditors of the crypto exchange WazirX, allowing the company to present its restructuring proposal.
The decision is a critical step in Zettai’s efforts to address debts and recover from the $230 million hack of WazirX linked to North Korea’s Lazarus Group.
Court Approval
Zettai is also protected from any legal action for 16 weeks while the plan is implemented. The creditors will be asked to examine the proposed Scheme of Arrangement which outlines the distribution of assets and the way the platform will resume its operations.
In addition, the court allowed adjustments to be made to the WazirX meeting process in order to increase participation by users who have been relatively quiet.
The lack of supporting evidence led some creditors to dismiss Zettai’s involvement in the cyberattack. The US, Japan and South Korea conducted investigations that identified Lazarus Group, as the culprit. This conclusion was confirmed by the court in their ruling.
Zettai has pledged that it will be transparent and to speed up the recovery of debts for its creditors.
Reorganization Plan
Nischal Shetty, founder of WazirX, expressed his optimism regarding the proposal. He said that the proposal offers creditors the best opportunity to recover their assets while also allowing the platform to rebuild.
Plan involves restructuring debts, allocating liquid assets to creditor and issuing tokens to aid in asset recovery. The plan also involves relaunching WazirX with new features such as decentralized exchanges and allocating profits to creditor recovery over the next 3 years.
The creditors’ meeting will be held online, with details of the voting process to be shared in the coming weeks. Zettai has called on creditors to back the plan, saying that it is a better option than other options.
Analysts see Zettai’s efforts as a test of Singapore’s legal framework for resolving complex financial disputes in the digital asset space. If the restructuring is successful, it could provide a template for similar situations.
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