WazirX secures majority creditors' nod for revised scheme of arrangement

Zettai said 95.7 per cent of WazirX creditors backed its revised scheme, covering $206.9 million in claims, with redistribution of assets pending Singapore court approval

Indian cryptocurrency exchange WazirX parent Zettai on Monday said a majority of creditors have approved its revised scheme of arrangement, paving the way for redistribution of virtual digital assets (VDAs), pending nod from the Singapore High Court.

 

This is the second time in a year that eligible creditors of the crypto exchange had to undergo a voting process. In March, platform users had voted in favour of the scheme of arrangement, which was rejected by the court.

 

Around 1.49 lakh scheme creditors participated in the revote, representing $206.9 million in claims. Of this, around 95.7 per cent or 1.43 lakh creditors representing $195.7 million voted in favour of the scheme.

 

“Under the amended scheme, the distribution of recoveries to scheme creditors will be managed through Zanmai India, a reporting entity under the Financial Intelligence Unit of India,” the company said in a statement.

 

The voting process was scheduled between July 30 and August 6. 

 

“This has been an incredibly challenging year for all of us, and we are deeply grateful for the unwavering trust and support we've received throughout this journey. Should the Singapore court sanction the scheme, we are committed to restarting operations within 10 business days of the scheme taking effect,” said Nischal Shetty, founder, WazirX.

 

Earlier, the Singapore High Court had rejected a proposed restructuring plan by the company in June after it did not disclose the incorporation details of the Panama entity during the process.

 

The company had conducted its voting round in March this year. In April, Zettai had said that 93.1 per cent of eligible voting creditors, representing 94.6 per cent in value of claims, voted in favour of the scheme, months after the company proposed restructuring in the Singapore court.

 

WazirX was reportedly hacked in July 2024, resulting in losses of over $230 million. The platform has 4.3 million creditors in total. Creditors are the investors and users who were affected by the cyberattack.