Zettai Pte Ltd, the majority shareholder of Singapore-based WazirX, has requested a moratorium to restructure its finances. A moratorium can be explained as a legal permission to debtors to postpone payments. Zettai’s request, filed in a Singapore court, is part of the company’s attempt to buy some time for WazirX to restructure its finances after the recent hack on one of the cryptocurrency exchange platform’s multi-sig wallets, which led to the theft of over $230 million (roughly Rs. 1,931 crore).
WazirX estimates that it could take Zettai at least six months to formulate a plan that, if approved by creditors and sanctioned by the Singapore Court, “would be legally binding on all relevant parties, including Zettai.” The platform needs this time to finalize the terms and conditions of this financial restructuring plan.
“There is an automatic 30-day moratorium from the filing of the application (i.e., August 27, 2024), and the Singapore Court will determine whether to grant the requested moratorium at a hearing of the application (and the duration of the moratorium, if granted),” the company said. “If restructuring is not favored, resolving cryptocurrency balances through alternative avenues could involve risks and indefinite timelines.”
According to the affidavit, Zettai was incorporated in Singapore in January 2019 under the laws of Singapore. On September 2, the WazirX team and the company's advisors will participate in a town hall session to explain the details of the latest development. The exchange claims that the plan formulated by Zettai in the coming days will ensure a fair and creditor-approved approach to the distribution of token assets.
Meanwhile, WazirX opened INR withdrawals for distressed users earlier this week. For now, WazirX customers will only be able to access and withdraw 66 percent of their funds, while the remaining 34 percent will remain frozen due to ongoing investigations into the incident.