WazirX Asks Singapore High Court for 6 Months to Restructure Its Liabilities

WazirX has filed an application with the Singapore High Court for a moratorium.

The plan proposes to alloocate the impact from the cyberattack pro-rata across users.

Indian cryptocurrency exchange WazirX has asked the Singapore High Court for six months to restructure its liabilities, it announced on Wednesday.

WazirX lost $230 million to a hack in July.

The move initiates an automatic moratorium of 30 days. A date for the hearing in which the court will decide whether to grant the moratorium has not yet been scheduled.

Co-founder Nischal Shetty submitted an affidavit to support the application under the name of Zettai Pte, which is incorporated in Singapore. Zanmai India is the subsidiary of Zettai and operates WazirX. A dispute with Binance is ongoing over who owns the platform.

Due to “confidentiality obligations … we may not be able to disclose certain information relating to the dispute,” WazirX said in a blog post.

The affidavit asks the court to order that “No resolution shall be passed for a winding up of Zettai; No execution, distress or other legal process may be commenced, continued or levied against any property of Zettai, except with the leave of the Court.”

The moratorium will provide Zettai with breathing space while it progresses with a restructuring, “the most efficient way to address users’ cryptocurrency balances on the Platform and facilitate recovery for users,” it said.

Under the “restructuring, the impact from the cyberattack will be allocated pro-rata across users who rank equally with each other as unsecured creditors, and users will receive a share of available token assets associated with the Platform proportionate to their share of all users’ unsecured claims for their account balances,” according to the announcement.

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