Token distributions will start within 10 business days of an effective Scheme if approved by Scheme Creditors and sanctioned by the Court
February 12, 2025 –Earlier in the week, Zettai Pte Ltd (“Zettai”) announced that the
voting process for the Scheme of Arrangement (“Scheme”) has been tentatively
scheduled from March 19 to March 28, 2025. This marks the most crucial step in its
restructuring process as rebalanced net liquid platform assets will be available
subject to the Scheme becoming effective.
During the voting period, WazirX users will have the option to vote in favour or against
the Scheme with a simple YES/NO button on the third party Kroll Issuer Services
voting platform, the results of which will be evaluated by the Independent Assessor
(Alvarez & Marsal).
For the Scheme to be effective, it must receive approval from the requisite majority
of Scheme Creditors and sanction from Singapore Court. Within 10 business days of
the Scheme becoming effective, the first token distribution under the Scheme to
Scheme Creditors will take place.
If approved within the estimated timeframe, WazirX’s recovery will be one of the
fastest in the industry. After obtaining the necessary court approvals to sanction the
Scheme, the first distribution is envisaged to be completed within less than a year of
the withdrawal freeze in July 2024, setting a new benchmark in crypto crisis
management and recovery
Nischal Shetty, Founder of WazirX said, “The upcoming voting phase is a pivotal
moment in our restructuring process. We are committed to ensuring a swift recovery
for our users and we need their support to make this happen. The rebalancing
process has been a crucial step in this journey and will play a key role in shaping
users’ decisions towards the Scheme.”
The High Court of Singapore granted Zettai leave to convene a Scheme Meeting in
January. Zettai remains committed to the restructuring process, which it believes is a
favourable option for its stakeholders. With token distributions set to begin upon
effectiveness of the Scheme, followed by additional phased distributions, the
company seeks to ensure a transparent, efficient, and secure recovery for its
creditors.
By executing one of the fastest and most transparent recovery processes in the
crypto industry, we aim to set a new benchmark for accountability and resilience.
Beyond the initial distribution, the Scheme envisions additional distributions over
three years, funded through, among others, Illiquid Wallet and Stolen Asset
recoveries and net shared profits generated from future operations. These
distributions will be facilitated through the purchase of Recovery Tokens issued to
Scheme Creditors.
WazirX has already frozen an initial tranche of stolen assets worth USDT 3 million and
continues to work with leading blockchain forensics firm zeroShadow, alongside law
enforcement agencies, to track and recover more stolen funds.
The rebalancing process, completed in January 2025, aligned the value held in asset
denominations of Net Liquid Platform Assets with platform liabilities to the extent
practicable. WazirX has been working closely with financial advisors, brokerages, and
legal experts to execute secure trades and optimize rebalanced token allocation to
Scheme Creditors. The rebalancing of available assets will potentially allow for the
distribution representing approximately 85% of Scheme Creditors’ balances which
were valued as of July 18, 2024, 1 PM IST.
With voting estimated to take place in March 2025, WazirX encourages all Scheme
Creditors to participate and approve the scheme to expedite the distribution
process.
