After the catastrophic cyberattack in July 2024, WazirX has not hesitated to safeguard its users’ rights and submitted a moratorium application to the Singapore High Court.
This creditors’ legal action is filed on 27th August 2024 under the Insolvency, Restructuring and Dissolution Act 2018 for the purpose of granting sufficient time for the company’s restructuring of obligation and integrating safe user balances under the well-planned Scheme of arrangement.
Anticipated restructuring plan to protect user assets
WazirX which now operates through its Singaporean-registered company Zettai Pte Ltd is proceeding with the restructuring plan that was intended to fairly distribute whatever remaining assets are left as compensation to the users who were affected by the hack.
This is through proportionate distribution of token assets, tracking, and identifying and retrieving the stolen tokens besides offering revenue-generating products to support user recoveries.
If proposed and accepted by creditors as well as recognized by the Singapore Court, this Scheme will legally help WazirX users and is considered to be more preferable, faster, and effective than the existing possibility.
Upcoming: Townhall and community
In order to clear out the air and to know the public sentiments, WazirX has planned a town hall video meeting during the week starting September 2, 2024. In this session, the users can listen to what the moratorium and restructuring mean and the questions they have can be posed directly to the WazirX team or advisors.
Currently, the WazirX leadership together with a team has released an elaborate 52-page affidavit provided directly to users of the platform which is filed personally by the cofounder Nischal Shetty, sharing the current situation and the steps they are taking to overcome it. The task of restructuring is possible only with the support of the WazirX community, as the platform tries to survive this period for its users.
Also Read: WazirX Lawsuit: CoinSwitch Demands Recovery of $9.65 Million in Trapped Assets
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