WazirX secures majority creditor nod for proposed scheme of arrangement

A majority of creditors of the beleaguered crypto exchange WazirX voted in favour of the proposed scheme of arrangement during a process conducted between March 19 and March 28.

 

WazirX’s parent firm Zettai said 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 High Court.

 

In total, 1,41,476 scheme creditors, representing $195.65 million in approved claims, cast a vote. Out of the total creditor base, 1,31,659 investors representing $184.99 million voted in favour of the scheme.

 

“The approval rate remained remarkably consistent between 92 per cent and 95 per cent across all creditor segments — from creditors with the smallest claims to creditors with the largest claims. This uniform backing across Zettai’s diverse creditor base confirms broad alignment with the proposed restructuring approach, regardless of size of approved claim,” the company said in a statement.

 

For the scheme of arrangement to be approved, at least 50 per cent of creditors by volume and 75 per cent by value were required to vote in favour of the scheme. Users of the crypto exchange had an option to vote in favour or against the proposed scheme on a third-party platform.

 

Zettai is expected to file an application with the Singapore Court for the sanction of the creditor-approved scheme. The company will issue an update to its creditors with the legal filings.

 

It added that the resumption of withdrawals and trading will happen in phases.

 

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

 

In a previous interaction with Business Standard, founder Nischal Shetty said if the platform resumed after the approval of the scheme, the company would earmark operational profits for its users upon revenue generation.

 

WazirX faced an alleged security breach, which affected the platform, leading to a loss of over $230 million in July last year.

 

The company has claims worth $546.5 million and $302 million in assets.