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WazirX parent, Zettai, calls creditors’ meet to recover stolen crypto

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The Singapore High Court has authorised Zettai Pte Ltd, the parent company of cryptocurrency platform WazirX, to convene a creditors’ meeting. The meeting aims to address a proposed recovery plan for over USD 230 million in assets stolen during a major cyberattack in July last year.

The court’s decision includes a 16-week moratorium, providing Zettai with the time and legal protection required to implement its restructuring strategy. As part of this process, Zettai has also received approval to streamline the scheme meeting procedures, enhancing participation from affected users.

According to Zettai’s statement, the meeting will be conducted online, and creditors will vote on the proposed Scheme of Arrangement electronically. Detailed instructions for participation will be shared shortly.

“The Court found that there was no abuse of process and also observed that there was no proper or sufficient evidence presented before the Court of wrongdoing or misconduct, contrary to suggestions made by certain users of the platform that Zettai had orchestrated the cyberattack,” WazirX wrote.

The Scheme of Arrangement, central to Zettai’s restructuring plan, focuses on optimising returns for WazirX users impacted by theft. The rebalanced liquid assets will be distributed in tokens to creditors within 10 business days. It introduces a multi-pronged approach to recovery that includes:

  • Issuance of Recovery Tokens (RTs): Users will receive RTs, enabling them to participate in a structured recovery process.
  • Recovery through RT purchases: The tokens will facilitate the distribution mechanisms designed to maximise recoveries.
  • Reactivation of WazirX: The exchange platform is set to relaunch with enhanced features, including a decentralised exchange (DEX), to restore user confidence and improve security.
  • Profit sharing: The net profits generated during the 36 months would fund RT purchases.

In December 2024, reports came out that the main suspect in the hack, M Hasan, had fled to Bangladesh, hindering the investigation. CoinSwitch also offered a Rs 600 crore recovery programme for WazirX users.

Last week, WazirX froze the first tranche of assets worth $3 million stolen during the July 2024 cyberattack to recover stolen assets, reports Decrypt.

In the News: Hackers allegedly breach ICICI bank, demand ransom by Jan 24

Kumar Hemant

Kumar Hemant

Deputy Editor at Candid.Technology. Hemant writes at the intersection of tech and culture and has a keen interest in science, social issues and international relations. You can contact him here: kumarhemant@pm.me

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