Zettai Pte Ltd, the parent company of the cryptocurrency The WazirX exchange posted on X (formerly Twitter) on Wednesday, August 28 that it had filed an application with the High Court of Singapore pursuant to Section 64 of the Insolvency, Restructuring and Dissolution Act 2018.
Cryptocurrency exchange According to its statement, the company intends to restructure its liabilities under a plan of arrangement. This move comes after the company lost $230 million in crypto assets following a cyber attack on July 18, 2024.
📢 Moratorium request filed with Singapore court
We wish to inform all users of the WazirX Platform that we have taken the next step to address users’ cryptocurrency balances following the cyberattack on 18 July 2024 by filing a moratorium with the High Court of Singapore… image.twitter.com/7IYES7pc6h
— WazirX: Bitcoin exchange in India (@WazirXIndia) August 28, 2024
The moratorium period will give the holding company some “breathing space” while it continues with the restructuring. WazirX said the period will give it time to develop a restructuring plan that “represents the most efficient way to address users’ cryptocurrency balances on the platform and facilitate their recovery.”
The company will get an automatic moratorium period 30 days from the date of submission of the application, and the Singapore High Court will decide whether or not to grant the company’s application.
Wazir X He said the hearing has not been scheduled and he would update the matter once he receives more information from Singapore’s legal body.
“Zettai has taken the initiative to simultaneously facilitate a solution for platform users as Zettai’s contingent unsecured creditors as quickly and efficiently as possible,” WazirX said.
The financial impact of the Cyber ​​attack They will be allocated on a pro rata basis among users who rank equally with others and unsecured creditors.
“We expect that, within the framework of a plan restructuringThe impact of the cyber attack will be distributed proportionally among users who rank equally as unsecured creditors, and users will receive a share of the available token assets associated with the Platform proportional to their share of the unsecured creditors of all users. claims for their account balances,” he said.
If the request is not accepted, the company will seek to resolve cryptocurrency balances through alternative avenues that may involve risks and indefinite timelines. “A restructuring may offer a more flexible and tailored approach compared to other potential options,” WazirX noted.
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