WazirX parent verifies platform assets, liabilities before creditor voting

The independent assessors (IA) verified the existence, control, and quantity of the platform assets

Zettai, the parent firm of embattled cryptocurrency exchange Wazir X, said Thursday that it had completed the verification of platform assets and liabilities, ahead of the company’s creditor voting to approve a scheme of arrangement.

 

The company said the assessment was conducted by independent assessors, including Joshua Taylor of Alvarez & Marsal (SE Asia) Pte Ltd and Henry Anthony Chambers of Alvarez & Marsal’s dispute and investigations practice.

 

The assessors have independently verified the existence, control and quantity of platform assets. These include net liquid assets in custody of digital asset company BitGo in four cryptocurrency exchanges and nine cold wallet addresses, Zettai said.

 

These make up $478.5 million and illiquid platform assets, such as stolen and illiquid wallet assets. WazirX suffered an alleged cybersecurity hack, resulting in losses of over $230 million in July 2024.

 

“The Independent Assessors’ verification provides critical transparency and integrity in verifying platform assets and liabilities, which our financial advisers, Kroll, have used for their detailed financial forecast and liquidation analysis for the purposes of the scheme (of arrangement),” the company said in a statement.

 

Last week, WazirX partnered with virtual asset service provider Zodia Custody as custodian, days ahead of the scheduled voting on a scheme for asset distribution.

 

For a scheme of redistribution of assets to be approved, WazirX would require the approval of at least 50 per cent of creditors by volume and 75 per cent by value. The platform has over 4.3 million creditors.

 

As part of the scheme, creditors will receive an annual distribution of available liquid assets within 10 business days of the scheme becoming effective. They will also receive recovery tokens, enabling them to redeem these as part of the company’s recovery process.

 

Zettai reported a consolidated loss of $809,490 in 2023-24 (FY24), down from $1.34 million in FY23, according to company disclosures. The company reported a revenue of $6.97 million in FY24, a 42.5 per cent decline from $12.13 million in FY23.