Singapore-based WazirX stakeholder Zettai files for moratorium to restructure funds

Zettai Pte Ltd, the Singaporean majority shareholder in WazirX, has filed for a moratorium to restructure its finances. A moratorium can be explained as a legal authorization for debtors to postpone payments. Zettai’s application, filed in a Singapore court, is part of the company’s attempt to buy some time for WazirX to restructure its finances following a recent hack on one of the cryptocurrency exchange’s multi-sig wallets that led to the theft of over $230 million (around Rs 1,931 crore).

WazirX estimates that Zettai may need at least six months to formulate a plan that, if approved by creditors and approved by the Singapore Court, “will be legally binding on all parties involved, including Zettai.” The platform needs this time to finalize the terms and conditions of this financial restructuring plan.

In an official statement shared on Wednesday, the beleaguered Indian exchange said the moratorium provides a respite while Zettai continues to implement a restructuring plan aimed at adjusting users’ cryptocurrency balances and facilitating the recovery of funds they may have lost in the hack.

“The automatic moratorium of 30 days shall arise upon the filing of the application (i.e. August 27, 2024) and the Singapore Court shall determine whether to grant the requested moratorium at the hearing of the application (and the duration of the moratorium, if so granted),” the company said. “If restructuring is not preferred, resolving cryptocurrency balances through alternative avenues may involve unspecified risks and timelines.”

Nischal Shetty, co-founder of WazirX, is the director of Zettai. In a statement to clients and reviewed by Gadgets360, Shetty tries to assure WazirX users that the Singapore-based entity will not cease operations during this ongoing process.

According to the statement, Zettai was registered in Singapore in January 2019 under Singapore law. On September 2, the WazirX team and the company’s advisors will attend a city session to explain the details of the latest developments. The exchange says that the program developed by Zettai in the coming days will ensure a fair and creditor-approved approach to the distribution of token assets.

Meanwhile, WazirX opened INR withdrawals for users in trouble earlier this week. For now, WazirX customers will only be able to access and withdraw 66 percent of their funds, while the remaining 34 percent will remain frozen due to ongoing investigations into the incident.