In a significant development for the cryptocurrency exchange WazirX, the Singapore High Court has approved a restructuring plan proposed by Zettai, WazirX's parent company. This plan aims to recover assets lost in a major cyberattack that resulted in the theft of cryptocurrency worth $235 million.

Key Points of the Restructuring Plan

• Court Approval: The Singapore High Court has approved Zettai's restructuring plan after an earlier proposal was rejected.
• Creditor Support: The revised plan received overwhelming support, with 95.7% of creditors backing it.
• Platform Resumption: WazirX founder Nischal Shetty announced that platform operations will resume within 10 business days once the scheme becomes legally effective.
• Expected Reopening: The exchange anticipates reopening by late October, with phased distributions to creditors.

Recovery Framework Details

The approved recovery framework includes several key components:

Impact of the Cyberattack

• The platform has been suspended for 15 months following the cyberattack.
• Nearly half of the platform's holdings were affected by the breach.
• The total value of stolen cryptocurrency amounted to $235 million.

This court approval marks a crucial step in WazirX's efforts to recover from a significant setback and restore operations. The comprehensive recovery plan, coupled with enhanced security measures, demonstrates the company's commitment to addressing the concerns of its users and creditors.

As the cryptocurrency industry continues to grapple with security challenges, this case underscores the importance of robust cybersecurity measures and effective crisis management strategies for digital asset platforms.

Cryptocurrency exchange WazirX has received approval from the Singapore High Court for its restructuring plans, marking a significant step towards recovery following a major cyber attack. The court's decision, which includes certain modifications to the original plan, comes after a successful re-vote among creditors.

Creditor Support and Restructuring Details

The restructuring scheme garnered overwhelming support from WazirX's creditors:

This strong backing demonstrates confidence in WazirX's recovery strategy following the cyber attack that resulted in the loss of approximately 45% of its cryptocurrency assets, valued at $234 million.

Key Points of the Restructuring Plan

1. Token Rebalancing: The approved scheme enables a token rebalancing process, allowing affected users to recover around 85% of their lost token value.

2. Operational Restart: WazirX plans to resume platform operations within 10 business days once the scheme becomes legally effective.

3. Enhanced Security Measures: In response to the cyber attack, WazirX has partnered with BitGo to strengthen its fund security protocols.

Corporate Structure and Market Position

WazirX operates through two main entities:

• Zettai Pte Ltd (Parent Company) - Based in Singapore
• Zanmai Labs - Operating in India

The company aims to leverage this restructuring to re-establish its position in the Indian cryptocurrency market, which has faced regulatory challenges in recent years.

Implications for the Crypto Industry

This development highlights several important aspects of the cryptocurrency landscape:

1. Resilience in Face of Cyber Threats: WazirX's ability to secure court approval for restructuring demonstrates the industry's capacity to recover from significant security breaches.

2. Regulatory Cooperation: The Singapore High Court's involvement underscores the increasing interaction between traditional financial systems and the crypto sector.

3. User Protection Measures: The focus on recovering user funds through token rebalancing reflects a growing emphasis on protecting cryptocurrency investors.

As WazirX moves forward with its restructuring plans, the crypto community will be watching closely to see how this recovery process unfolds and what lessons can be learned for enhancing security in the volatile world of digital assets.