Latest news with #WazirX
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Business Standard
8 hours ago
- Business
- Business Standard
Singapore court rejects restructuring plan of WazirX parent Zettai
In a major blow to crypto traders on exchange platform WazirX, the Singapore High Court on Wednesday rejected the proposed restructuring plan of WazirX's parent company, nearly a year after an alleged cyber heist resulted in a loss of $235 million in virtual digital assets. The dismissal of parent firm Zettai's scheme of arrangement comes weeks after the company incorporated a subsidiary, Zensui Corporation, in Panama. The court's action was prompted by the company's failure to disclose these incorporation details during the restructuring process, according to people familiar with the matter. Zensui was incorporated on 10 March this year, according to an affidavit submitted to the Singapore Court and reviewed by Business Standard. In addition, the company said Zettai did not intend to obtain a digital token service provider (DTSP) licence in Singapore. It added that the parent or its Panama subsidiary did not intend to apply for registration with India's Financial Intelligence Unit (FIU-IND). The crypto exchange may appeal against the latest order issued by the Singapore Court, a person close to the development said, requesting anonymity. According to Singaporean laws, digital token service providers (DTSPs), subject to a licensing requirement in the country, are required to suspend or cease such business outside the island nation by 30 June 2025. The setback to the company may further stretch the timeline on the distribution of available assets to its creditors. 'Zettai also failed to disclose the incorporation of its subsidiary, Zensui, which was incorporated on 10 March, and an agreement to transfer cryptocurrency assets to Zensui—both of which were not communicated to users or the Court,' said Navodaya Singh Rajpurohit, legal partner, Coinque Consulting and founder, Pravadati Legal. He added that Zettai revealed it does not intend to register with the Financial Intelligence Unit – India, a prerequisite for lawfully distributing cryptocurrency in India. 'These omissions and regulatory non-compliances made the scheme unviable and lacking in transparency,' he said. In the affidavit, the company said the Financial Services and Markets Act 2022 (FSM) did not present any legal or practical impediment to Zettai effecting the first distribution or allowing withdrawals in accordance with the scheme of arrangement—one of the reasons it did not intend to apply for the DTSP licence. 'The Panama subsidiary was the custody of the crypto related to redistribution since the holding was with Singapore. It was an interim since the firm wanted to go to a jurisdiction where it could follow a framework and regulation after 30 June,' a person close to the company said. In April, Zettai 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 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 Hindu
19-05-2025
- Business
- The Hindu
WazirX investors fear further delays as moratorium extended to June 6
WazirX users have been waiting for more than six months to access their locked crypto funds. Their wait will be longer as the Singapore court has extended an existing moratorium to June 6. The WazirX cryptocurrency exchange has been trying to push for restructuring through the Singapore legal system after a hacked multi-signature wallet last year led to the loss of over $230 million in crypto assets. The attack was later tied to North Korean hackers. 'The hearing for SUM 940 took place on 13 May 2025 before the Singapore Court. While no orders were made at this stage, the Court has directed the Company to file a further affidavit(s) by 23 May 2025, and extended the existing moratorium to 6 June 2025,' posted WazirX on the X social media platform on May 14. SUM 940 is the application WazirX-operating entity Zettai filed in the Singapore High Court to seek formal approval for the restructuring scheme after the voting process, the company explained. WazirX's voting process was conducted via the Kroll Issuer Services platform between March 19 and March 28 this year, with 93.1% of voting creditors who were representing 94.6% in value voting in favour of the company's restructuring scheme. WazirX had previously said that after the needed legal approvals, the first distributions could begin within 10 business days of the scheme becoming legally effective. This is why the extension of the moratorium is causing investors to worry. WazirX said the Singapore court had not yet set another hearing date but that a possible decision related to the matter could come after the due date for the company affidavits, which is May 23. 'We know many of you are eagerly waiting for the platform restart and first distribution. Please be assured that we are doing everything we can to make this possible under an effective Scheme, and we'll continue to keep you informed when we receive directions from the Court,' posted WazirX on May 14, thanking users for their support and patience.
Time of India
15-05-2025
- Business
- Time of India
Consider taking over 2kcr crypto fraud probe, CBI told
New Delhi: A Delhi court, examining a cryptocurrency fraud of around Rs 2,000 crore, has asked CBI to consider taking over the probe from Delhi Police. The directions came from the additional sessions judge Sumit Dass on May 1 when he was hearing a bail plea by the prime accused, West Bengal resident SK Masud Alam. Tired of too many ads? go ad free now The plea will be heard on May 19. "Before I deal with the bail application, in my considered opinion, this particular case is one which requires investigation by any national or central investigating agency like CBI. The ramifications of this case, particularly the magnitude of the offence, the manner in which the offence was committed, and the footprint which may be all over the world, require thorough investigation. The entire module, which has or had the knowhow as to decoding/breach of the security codes/system, has to be comprehensively busted," the judge said. He added that another angle which requires consideration is the possible participation of a syndicate or state support behind the fraud as it affects the industry/entrepreneurship, and the amount siphoned/cheated can be used for many illegal activities. Alam's two bail pleas have been rejected by the court. In July 2024, cryptocurrency platform WazirX suffered a cyber attack, resulting in the theft of nearly Rs 2,000 crore. Zanmai Labs Private Limited, the company that operated WazirX, approached Delhi Police and lodged a complaint with the Intelligence Fusion and Strategic Operations (IFSO) unit. WazirX stores crypto funds invested by its customers in various third-party multi-signature wallets. The prosecution said that last year, the company's wallets was drained, and a subsequent probe revealed that these were hacked with a total transaction of $234 million. Tired of too many ads? go ad free now Following this, Delhi Police registered a case. The name of Souvik Mondal, a resident of West Bengal's Midnapur, came up during the investigation. His account was registered on the platform on July 11, and he had received a crypto deposit of over Rs 91 lakh in his WazirX account. The court noted that Alam was in judicial custody for over eight months, and his bail plea was moved repeatedly as the investigation had made no progress. The investigation officer submitted that they had sent notices to various govt and investigating organisations.
Hindustan Times
15-05-2025
- Business
- Hindustan Times
Delhi court asks CBI to consider taking over cryptocurrency fraud case probe
A Delhi court examining a cryptocurrency fraud of around ₹2,000 crore has asked the Central Bureau of Investigation (CBI) to consider taking over the probe from Delhi Police suspecting involvement of a syndicate. The recent order by additional sessions Judge Sumit Dass of Patiala House Court on May 1 was passed while hearing a bail application moved by the prime accused in the case, a West Bengal resident SK Masud Alam. Earlier, his two bail applications were rejected by the city court. On July 18 last year, leading cryptocurrency platform WazirX suffered a cyber attack resulting in the theft of nearly ₹2,000 crore. Zanmai Labs Pvt. Ltd, the company operating WazirX had approached the Delhi Police and lodged a complaint with the Delhi Police Intelligence Fusion and Strategic Operations (IFSO) unit. WazirX stores crypto funds invested by its customers to various third-party Multi Signature Wallets. Last year, the company noticed that the entire custody of wallets had been drained off and subsequent probe revealed that the Multi Signature Wallets had been hacked with a total transaction of 234 million US dollars. A case pertaining to criminal conspiracy and cheating was registered by the Delhi Police under the Bhartiya Nyaya Sanhita (BNS) and the name of one Souvik Mondal, a resident of Medinipur in West Bengal, cropped up during probe. Mondal's account was registered on the platform on July 11, and he had received a crypto deposit of over ₹91 lakh in his WazirX account. Police later found that Mondal's account was registered in the name of one SK Masud Alam. In the May 1 order, ASJ Dass said that before deciding on Alam's bail plea, the court would like to delve into why cyber fraud, having international ramifications, merits an investigation by a central agency. The order said, '... this particular case is one which requires it to be investigated by any national or central investigating agency like CBI. Ramification of this case, particularly the magnitude of the offence, the manner in which the offence has been committed and the footprints which may be all over the world -- require to be thoroughly investigated'. The court said that the entire module which had the knowhow to decode or breach the security code system has to be comprehensively busted. The court further said that there was another angle to the case which needed to be investigated by the concerned probe agency. Also Read: Bengaluru techie uses Zoom call to expose wife's secret marriage, wins in court: Report 'There may be a participation of a syndicate/state support behind the fraud as it affects the industry/entrepreneurship and the amount so siphoned/cheated can be used for many more illegal activities,' the order said. The court noted that Alam had been in judicial custody for more than eight months and his bail plea has been moved on repeated occasions due to the investigation making no progress. ASJ Dass said that the Investigating Officer (IO) of the case has submitted that they had sent notices to various organisations, the details of which were kept confidential, as it included government and investigating organisations. The court said that it is not directing any transfer of investigation as yet, even as it directed a copy of its order to be sent to the director of CBI for taking a call based on its suggestions. The bail application will be heard next on May 19. Alam was arrested from Medinipur in August last year and during interrogation, he revealed that he came into contact with one M. Hasan through the social media app Telegram, who in turn offered him a good amount for getting WazirX crypto platforms with credentials.
Int'l Business Times
08-05-2025
- Business
- Int'l Business Times
G7 Leaders Consider Discussing North Korea's Crypto Threat At Canada Summit: Report
Sources told Bloomberg that G7 leaders were considering if the matter was worth discussing at the summit Lazarus Group is at center of crypto thefts, as the latest data showed that the North Korea-linked hacking group holds over $800M in crypto The hackers are associated with the $1.4 billion and $230 million exploits of Bybit and WazirX, respectively Leaders of the Group of Seven (G7) countries are reportedly weighing whether they should include North Korea-backed cyberattacks and cryptocurrency thefts during their much-anticipated summit in Canada next month. G7 leaders are increasingly aware of the "alarming" cyber activities of North Korea-linked hackers, and the matter may arise during the summit, Bloomberg reported Wednesday, citing sources familiar with plans around the summit. Digital assets in the spotlight ahead of G7 summit Leaders of the G7 nations, which consist of the United States, United Kingdom, Canada, Italy, France, Germany, and Japan, are heading to Alberta, Canada, in June to discuss various aspects of economy and geopolitical matters at a time when the world is fast-moving toward a digital financial era. Digital assets and cryptocurrencies are becoming major payment mediums, and with crypto exchange-traded funds (ETFs) driving institutional interest, hackers linked to the North Korean regime are also evolving to match the momentum. Data from onchain analytics firm Arkham Intelligence shows that as of early Thursday, North Korea's Lazarus Group, a notorious hacking group linked to multiple cyberattacks and crypto thefts over the years, holds over $819 million worth of crypto assets, including a staggering 8,032 Bitcoin (worth approximately $799 million). In 2023, a White House official revealed that about half of North Korea's missile program has been funded by cyberattacks and crypto theft, raising serious concerns about the country's capabilities in deploying mass attacks. While the agenda of the June summit has not been finalized yet, at least two G7 nations -- U.S. and Japan -- have already moved to sanction cybersecurity attacks associated with North Korean hackers. Notably, President Donald Trump's re-entry into the White House has put crypto into the global spotlight as he vowed to make America the global crypto superpower. It is unclear if his administration will raise the matter around crypto theft threats during the summit. Lazarus Group deals massive losses to crypto industry Over the years, Lazarus Group has been held responsible by some crypto sleuths and researchers for some of the most devastating attacks in the industry. Most recently, in February, leading crypto exchange Bybit suffered a $1.4 billion exploit that marked the largest single heist in crypto and blockchain history. Prominent crypto sleuth ZachXBT pointed to Lazarus Group as the exchange's attacker, as confirmed by Arkham, which launched a bounty into the exploit. Likewise, ZachXBT said the $230 million exploit of Indian crypto exchange giant Wazir X "has the potential markings of a Lazarus Group attack (yet again)." The said exploit took place in mid-2024, resulting in millions of losses to WazirX users.
