The recent turn of events in the Singapore High Court marks a significant milestone for WazirX and its users. The court’s decision to revisit its stance on the exchange’s restructuring proposal could lead to potential redistributions of cryptocurrency to affected users.
New Developments for WazirX After High Court Decision
In a recent update from WazirX on X, the exchange detailed the outcome of the Singapore High Court hearing on July 16. The court has reversed its previous dismissal of the exchange’s restructuring plan, now allowing for a timely revote that may facilitate the reopening of the platform.
WazirX suspended operations nearly a year ago, following a devastating hack that resulted in a loss of $234 million from users’ cryptocurrency assets. At the time of the incident, the exchange reportedly had about $500 million in total reserves, meaning a significant portion of its assets had been compromised.
The incident was attributed to the notorious Lazarus Group, a hacking collective linked to North Korea. Following the breach, WazirX halted all deposits and withdrawals to ensure the security of remaining assets, a situation that appears poised for change.
The exchange, under the guidance of its parent company Zettai PTE LTD, sought to restructure its operations. Although the initial vote garnered considerable support from creditors, the Singapore High Court rejected it on June 4, primarily due to concerns about regulatory compliance and the role of Zensui, a Panama-based entity, in the proposed distribution of funds.
Following revisions to their proposal, WazirX returned to court, and the latest ruling from the High Court now permits a revised plan and expedited revote with creditors.
Along with this news, Nischal Shetty, CEO of WazirX, addressed the community on X regarding the court’s decision. He clarified, “The significant change involves Zanmai taking over the responsibilities of fund distribution, instead of Zettai, contingent upon the approval of the scheme.”
Zanmai Labs manages the Indian Rupee (INR) transactions for WazirX, while Zettai was primarily focused on cryptocurrency operations, making it central to the ongoing legal discussions.
Updates on the voting process are expected to be released shortly. WazirX stated, “If the updated scheme gains the necessary majority support from creditors and receives court approval, the platform’s reopening is envisaged.”
The cryptocurrency community is watching closely as stakeholders await a resolution, hoping that users who have been offline for over a year will finally gain access to their funds.
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