NewsCorporate ActionsWazirX Secures Singapore Court Approval for Restructuring Plan After $234 Million Crypto HackWazirX Secures Singapore Court Approval for Restructuring Plan After $234 Million Crypto Hack
Cryptocurrency exchange WazirX has received approval from the Singapore High Court for its restructuring plans following a major cyber attack. The plan, supported by 95.70% of voting creditors representing 94.60% of the value, allows for token rebalancing to recover about 85% of lost token value. WazirX aims to restart operations within 10 business days after the scheme becomes effective and has partnered with BitGo to enhance security. The company operates through Zettai Pte Ltd in Singapore and Zanmai Labs in India.
*this image is generated using AI for illustrative purposes only.
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:
| Aspect | Percentage |
|---|---|
| Voting Creditors in Favor | 95.70% |
| Value Represented by Supporting Creditors | 94.60% |
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
Token Rebalancing: The approved scheme enables a token rebalancing process, allowing affected users to recover around 85% of their lost token value.
Operational Restart: WazirX plans to resume platform operations within 10 business days once the scheme becomes legally effective.
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:
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.
Regulatory Cooperation: The Singapore High Court's involvement underscores the increasing interaction between traditional financial systems and the crypto sector.
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.
15
