Wazir X, the India-based Crypto exchange, has filed an application with a Singapore court seeking a moratorium after its $230 million crypto heist last month. This is as per Inc42.
The Singapore court will decide to rule or grant the moratorium to the company
Wazir X, the India-based Crypto exchange, has filed an application with a Singapore court seeking a moratorium after its $230 million crypto heist last month. This is as per Inc42.
Wazir X's Parent entity Zanmai Labs Pvt Ltd and Zettai Pte, which holds the shares in Wazir's subsidiary, reportedly filed a moratorium application on August 27.
As per the Exchange, the move will give it the necessary "breathing space", while Zettai focuses on restructuring liabilities under a scheme of arrangement.
The application expects Zettai to be given at least six months to consider the terms of the restructuring plan and work with the relevant stakeholders.
The date of the hearing has not been fixed yet, WazirX reportedly said.
It is relevant to note that a moratorium of 30 days automatically kicks in following the filing. The Singapore court will decide to rule or grant the moratorium to the company.
A month ago, hackers infiltrated and stole $234.9mn in crypto assets parked with the WazirX. The assets were 45 per cent of the total user funds on the platform. The company after its breach, reportedly suspended its withdrawals and filed an FIR in connection with the cyberattack.
The company, before a week, was looking to file an application in the high court of Singapore seeking a moratorium to pursue a restructuring under a scheme of arrangement. The scheme would enable it to put forth a proposal to its creditors to restructure its debts to "deliver stronger recoveries to creditors" compared to a liquidation process.
Despite its ongoing dispute between Zettai and Binance, WazirX said, Zettai looks to "facilitate a solution for users of the platform as contingent unsecured creditors of Zettai as quickly and effectively as possible".
It is also said that users will receive a share of available token assets proportionate to their share of all users' unsecured claims for their account balances under the planned restructuring exercise.