Summary:
- Cyberattack Impact: On July 18, Wazirx suffered a major cyberattack resulting in the theft of over $230 million in cryptocurrency.
- Moratorium Application: Zettai Pte Ltd., the Singapore-based holding company of Wazirx, applied for a moratorium in Singapore’s High Court on August 27 to restructure its liabilities under a scheme of arrangement.
- 30-Day Relief Period: The moratorium aims to provide Zettai with a 30-day automatic relief period to address the platform’s financial losses.
- User Impact: The restructuring plan intends to distribute the financial impact of the cyberattack among Wazirx’s users, classified as unsecured creditors, with recovery proportionate to their account balances.
- Court-Approved Scheme: If sanctioned, the scheme would legally bind all parties and could allow the reopening of cryptocurrency withdrawals within six months, depending on court and creditor approval.
- Ongoing Dispute: Zettai is currently in a confidential dispute with Binance.
- Next Steps: A town hall meeting will be hosted by Zettai to explain the restructuring process and answer user questions.
In response to the July 18 cyberattack that led to the loss of over $230 million in cryptocurrency, Zettai Pte Ltd., the Singapore-based holding company of Wazirx, has applied for a moratorium in Singapore’s High Court. The moratorium, filed on August 27, aims to restructure Zettai’s liabilities under a scheme of arrangement, providing a 30-day automatic relief period for the company to address the platform’s losses.
The restructuring plan proposes to evenly distribute the financial impact of the cyberattack among Wazirx’s users, who are considered unsecured creditors. If the scheme is sanctioned by the court, it would legally bind all parties, potentially allowing the reopening of cryptocurrency withdrawals within six months, subject to the court and creditors’ approval.
This filing follows ongoing disputes with Binance, and Zettai plans to host a town hall meeting to further explain the restructuring process and answer any user queries. According to Zettai, the restructuring offers more flexibility and a faster resolution compared to other potential options.
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