WazirX, a cryptocurrency exchange experienced a significant security breach in July 2024, losing nearly 45 per cent of its crypto assets valued at around $234 million after a cyber-attack on one of its wallets. The incident encouraged further scrutiny of asset protection procedures across cryptocurrency platforms and sparked concerns about the security process.
WazirX had earlier announced plans to file for Singapore Court approval of its restructuring scheme, aiming to start distributions within 10 working days upon approval. Since the Court rejected the plan, the process is currently on hold, and the company intends to appeal.
In a recent statement on X (formerly Twitter), WazirX said, "The Honourable Singapore High Court issued an order declining to approve our proposed restructuring plan. While this outcome was not what we anticipated, we respect the Court's decision." The restructuring plan was intended to help the company address its financial and operational challenges.
WazirX further stated that it remains dedicated to following all legal and regulatory procedures. The exchange intends to appeal the decision and is now considering its legal alternatives.
WazirX reportedly emailed its users with redacted legal documents outlining impending organizational changes, CoinTelegraph reported. According to one of the documents, Zettai, WazirX's parent company, intends to move its activities to Panama and create a new corporate identification.
It indicates that Zettai has established a subsidiary called Zensui Corporation in Panama and intends to transfer the platform's crypto services to this corporation.
Earlier, approximately 92 per cent of WazirX's voting creditors supported the crypto exchange's restructuring proposal following the hack. WazirX had assured that the affected tokens could recover 75 to 80 per cent of users' account balances at the time of the incident.
The company also clarified that the Court's decision does not affect the NLPA assets under its management, which remain secure.
