Zettai Pte Ltd, based in Singapore and the operator of WazirX, has sought approval from the Singapore High Court for a Scheme of Arrangement related to WazirX. This was announced by Nischal Shetty, the founder and CEO of WazirX, on X. This initiative is a key move towards restoring confidence and ensuring the stability of the cryptocurrency platform.
The proposed scheme intends to facilitate a swift and equitable recovery of the approximately $230 million lost by users.
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
Expedited Filing for Solutions
Nischal Shetty emphasized the remarkable speed of the filing process despite its intricate nature in his tweet. The organization is focused on recovering misappropriated funds, revamping its operations, and providing financial assistance to its users or the scheme’s creditors through collaborative global efforts.
This scheme was submitted on December 6, 2024, following a decision by the Singapore High Court on September 26 that granted a four-month pause to allow Zettai to develop a comprehensive recovery strategy.
WazirX’s Restoration Strategy
The proposed framework is viewed positively by creditors. It suggests that an initial distribution could occur within ten business days of receiving approval, which would involve proportionate distribution of $566.39 million in USDT liquid assets, along with recovery tokens associated with asset recovery initiatives.
Moreover, the plan guarantees transparency through independent audits and reports, with added potential for profit contributions from a planned decentralized exchange aimed at enhancing the recovery pool.
While this scheme offers a proactive approach, its success hinges on creditor endorsement and judicial approval. Failure to secure these could lead to extensive delays for creditors.