WazirX files for moratorium application in Singapore Court

• WazirX filed a moratorium application following the cyberattack on July 18, resulting in more than $230 million in theft.
• Zettai Pte Ltd has taken the next step in its efforts to address users’ cryptocurrency balances on the platform.
• The filing aims to grant a 30-day automatic relief period, allowing Zettai to address the platform’s losses by reorganizing its liabilities.

 

WazirX, an Indian cryptocurrency exchange, announced that a moratorium had been filed in Singapore’s High Court under the Insolvency, Restructuring and Dissolution act to address users’ crypto balances. This moratorium was filed due to the cyberattack on July 18 that resulted in more than $230 million in theft. The move aims to provide a 30-day relief period for WazirX to reorganize its liabilities through a scheme of arrangement. The Singapore court will determine the duration of the moratorium.

 

WazirX moves to restructure liabilities, seeks court approval post-cyberattack

 

WazirX announced that Zettai Pte Ltd (Zettai), the Singapore-based holding company for WazirX, has taken the next step in its efforts to address users’ cryptocurrency balances on the platform following the cyberattack and theft of crypto tokens of more than $230 million from the platform on July 18.

 

The application was filed on Tuesday with the High Court of Singapore for a moratorium under section 64 of the Insolvency, Restructuring and Dissolution Act 2018 to facilitate its intention to restructure its liabilities under a scheme of arrangement.

 

This moratorium provides breathing space while Zettai progresses with restructuring. It represents the most efficient way to address users’ cryptocurrency balances on the platform and facilitate user recovery. 

 

“An automatic 30-day moratorium arises from applying, and the Singapore Court will determine whether to grant the moratorium sought at a hearing of the application (and the duration of the moratorium, if so granted). The hearing date has not yet been scheduled, and we will update you when we receive more information from the Singapore Court.” said the platform in their blog post.

 

“A townhall will be held in the week commencing 2 September 2024 to explain key features of the moratorium and the Scheme. Further details in respect of this townhall will be provided in the coming days and users will be given the opportunity to submit questions in advance of the townhall”, Wazirx wrote on social media platform X on Wednesday.