On 06 November 2024, WazirX, an Indian cryptocurrency platform, announced a Townhall meeting for its creditors to introduce its latest restructuring tools. The session, conducted by WazirX’s restructuring team, including Zettai Pte. Ltd., will reveal a Rebalancing Calculator and Scheme Timeline Calculator, designed to empower creditors with greater insights into the platform’s restructuring efforts.
WazirX’s Fourth Townhall will take place from 5:30 to 6:30 PM IST (Indian Standard Time) or 8 PM to 9 PM SGT (Singapore Time) on 06 November 2024. Available on WazirX’s YouTube channel, the live session will include a presentation and a question-and-answer segment, allowing creditors to dial in for direct interactions with the Zettai restructuring team. This meeting forms part of WazirX’s commitment to transparency and active creditor engagement.
WazirX’s restructuring is conducted under Singapore’s Scheme of Arrangement, a framework that legally binds the agreement once creditor and court approvals are secured. The Singapore Court granted a moratorium until 26 January 2025 to provide Zettai time to finalise its restructuring proposal. The process incorporates stringent Anti-Money Laundering and Counter-Terrorism Financing compliance as the scheme advances.
On 15 October 2024, WazirX, held its first Committee of Creditors (COC) meeting to discuss ongoing restructuring plans following a cyberattack that resulted in significant financial shortfalls. The meeting, led by Zettai Pte. Ltd., the entity currently managing WazirX’s crypto assets, provided an overview of the restructuring process under a Singapore-based Scheme of Arrangement, which aims to recover and equitably distribute assets to creditors.
The COC was formed to represent creditor interests, offering input on restructuring preferences, though it has no direct decision-making power. WazirX is currently addressing a 45% asset deficit resulting from a cyberattack on 18 July 2024, with approximately USD 302 million in assets available against total claims of USD 546.5 million from crypto deposits. This shortfall is compounded by an unresolved ownership dispute between Zettai and Binance, leaving the contractual obligations toward users unclear. The Singapore Court has granted a four-month moratorium, effective until 26 January 2025, to allow Zettai time to develop and implement the restructuring plan.
The restructuring approach includes distributing liquid assets to creditors in the token denomination of their choice, while legal and recovery efforts pursue illiquid assets and stolen tokens. Additional recovery avenues are under exploration, including partnerships with “white knight” investors and the potential restart of the WazirX exchange to generate new revenue. A secondary debt market is also being considered, which would allow creditors early liquidity by selling claims before the full restructuring process is completed. WazirX plans to initiate creditor outreach to explain the restructuring timeline and ensure creditors understand the process, including meetings, proof of debt adjudication, and voting on the scheme. The aim is for the plan to be court-sanctioned by March 2025, following creditor approval.
During the COC meeting, Zettai provided a breakdown of assets, with USD 284 million categorized as liquid assets and another USD 17.7 million as illiquid assets subject to legal pursuit. An additional USD 12 million from liquid assets is allocated to fund the restructuring process. Zettai emphasized that creditors would benefit from asset valuation based on the latest market prices, providing potential gains in an improving market. Discussions with potential “white knight” investors are in progress, although specific terms remain confidential under non-disclosure agreements. Further updates are to follow on how Wazir X will pursue the restructuring.
