Zettai Pte Ltd, a Singapore-based company that operates WazirX, has filed an application with the Singapore High Court for approval on a Scheme of Arrangement for WazirX. This announcement was made by WazirX’s founder and CEO Nischal Shetty on X. This marks as a crucial step towards rebuilding trust and stabilizing the cryptocurrency platform.
The current scheme aims to ensure quick and fair recover of the loss experienced by the users which was around $230 million.
The scheme of arrangement has been filed.
This is likely one of the fastest filings ever for such a massive and complex matter.
I’m deeply grateful to the incredible teams from multiple companies and geographies who came together to make this happen in record time.
But our… pic.twitter.com/ElyHrRM9sj
— Nischal (Shardeum) 🔼 (@NischalShetty) December 10, 2024
Fast-Tracked Filing for Resolution
Nischal Shetty, the CEO and founder of WazirX in his tweet, highlighted and appreciated the speed at which this filing took place despite the complexity of the situation. With global collaborative efforts, the company seeks to recover stolen funds, rebuild operations and offer users or the scheme creditors financial relief.
The scheme was filed on December 6, 2024, which comes after the Singapore High Court’s September 26, decision to grant a four-month moratorium, allowing Zettai to prepare a proper recovery plan.
WazirX’s Recovery Plan
The framework seems promising and viable to the creditors. According to the framework, initial distribution can be made within the next 10 business day of approval, proportionate token distribution from $566.39M USDT in liquid assets, and recovery tokens tied to asset retrieval efforts.
Additionally, transparency is ensured through third party verifications, reporting, with further upside potential through profits from a planned decentralized exchange directed to the recovery pool.
The scheme presents a pro-active path forward but now it all depends on the creditor approval and court sanction. If this scheme does not work out, the creditors may have to face long delays.
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