Zettai Pte Ltd, the parent company of the cryptocurrency exchange WazirX, announced a restructuring plan to return user funds following a major $230 million cyberattack.
Restructuring and Fund Return
Today, Zettai Pte Ltd held a town hall meeting to discuss the ongoing restructuring process after the $230 million (₹2000 crore) hack of the WazirX exchange. The company announced that the restructuring could take up to six months, during which users will gradually regain access to their funds. The restructuring process was officially requested in a Singapore court on August 23 and involves reallocating the remaining crypto assets to users on a pro-rata basis. Approximately 45% of the available funds will cover restructuring costs, while the remaining 55% will be returned to customers in cryptocurrency.
Investor Support and Partnerships
WazirX co-founder Nischal Shetty and representatives from the financial advisory firm Kroll, including Jason Kardachi and George Gwee, discussed the detailed restructuring plan. Gwee highlighted that users can expect to receive between 55% and 57% of their funds back. Additionally, WazirX is seeking support from investors to secure the vital capital needed to return user funds and stabilize the company’s financial situation. The company is also exploring potential partnerships and collaborations to further aid in the recovery process.
Legal Protection and Transparency
To protect itself from immediate legal actions, WazirX applied for a moratorium with the Singapore High Court. This legal protection will allow the company to focus on restructuring without the pressure of immediate legal challenges. Today’s town hall was a step towards transparency and reassurance for the WazirX community. The company will navigate this challenging period with a clear plan and will communicate openly with its users and stakeholders.
Through restructuring, WazirX intends to return up to 57% of user funds and stabilize its financial situation with the support of investors and new partnerships.
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