Latest news with #WazirX-operating
Time of India
2 days ago
- Business
- Time of India
Singapore HC axes WazirX restructure plan after $235-million cyber heist
In a big blow to crypto exchange WazirX, the Singapore High Court , on Wednesday, dismissed its restructuring plan submitted by Zettai Pte Ltd in November 2024, after the platform suffered a $235 million cyber theft in July last year. Sources privy to Wednesday's hearing told ET, the Singapore court observed that WazirX-operating entity Zettai Pte Ltd was not registered in India and hence the restructuring Scheme shall not be valid. The plan, proposed by Zettai, was placed before the court as part of an insolvency process after WazirX , once the largest Indian cryptocurrency exchange, lost $235 million or nearly half of its crypto reserves in a cyber theft by North Korea-based hackers in July 2024. Later in November, it proposed a rebalancing scheme which aimed to return 52% of total creditor claims through remaining liquid assets ($284 million). Though the proposal had received investors' vote, it required court sanction to take effect. ETtech However, on Wednesday, the Court quashed the plea on grounds that the scheme is not valid in India where Zettai does not operate as a registered reviewed the documents Zettai has filed in response to queries from the Singapore court. WazirX confirmed the development and said that it will appeal against the court's decision. "Our primary focus remains to begin distributions as soon as are currently evaluating all available legal options in consultation with our legal and advisory teams, and will be appealing against the decision of the Singapore High Court," it said in a statement. Discover the stories of your interest Blockchain 5 Stories Cyber-safety 7 Stories Fintech 9 Stories E-comm 9 Stories ML 8 Stories Edtech 6 Stories WazirX did not respond to ET's detailed query on the matter. Zettai, the Singapore-based company, is not registered with the Financial Intelligence Unit-India (FIU-IND), the financial crime watchdog that mandates reporting obligations for crypto platforms. Instead, WazirX operates in India under a separate entity, Zanmai Labs . This dismissal comes despite, former Supreme Court judge BN Srikrishna , stating his independent opinion in the matter that Indian laws do not licence or regulate crypto platforms operating in India and hence, do not hinder the plan to proceed. Interestingly, the company had registered in Panama three months ago, Zensui, where it was expected to transfer the crypto assets. This comes after the latest mandate that allows only licensed entities to distribute cryptocurrencies in the region through the Financial Services and Markets Act (FSM), which will come into effect on June 30, 2025.
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.
