The WazirX team has officially announced that the hearing date for Zettai’s application for leave to convene a meeting of its creditors has been scheduled for 22 January 2025. This comes after a tumultuous period for the popular crypto trading exchange, which was once a favorite among Indian crypto traders.
In July 2024, WazirX fell victim to a cyber attack where its cold wallet was breached by an unknown hacker, believed to be associated with the North Korean hacking group Lazarus. This resulted in a loss of 45% of the customer’s funds, leaving the exchange in a state of financial distress.
Currently, the leadership of WazirX is embroiled in a legal battle in a Singapore court, working with their legal team to gain regulatory approval to resume the exchange’s services despite facing liquidity issues.
The recent announcement by the WazirX team regarding the hearing for Zettai’s application sheds light on the ongoing efforts to address the financial challenges faced by the exchange. If the Singapore court grants Zettai’s application, the next steps in the process will involve convening a meeting of WazirX creditors to propose a restructuring scheme and allow creditors to vote on the proposed plan.
The WazirX team has assured that once the Scheme is approved, the distribution of funds to customers will commence within 10 business days following the effective Scheme Date. However, it is important to note that the timeline for this process may extend beyond expectations, as there are several steps involved in the restructuring process.
Despite speculation that funds distribution may occur by February 2025, it is more likely that the process will extend into the first week of March. Any unforeseen challenges or delays in the process could further push back the timeline for fund distribution.
As the WazirX team navigates through this challenging period, customers and stakeholders are advised to stay updated on the latest developments and remain patient as the exchange works towards resolving its financial issues. Stay tuned for more updates on this evolving situation.