Cryptocurrency exchange WazirX, owned by Singapore-based Zettai Pte Ltd, has received approval from the Singapore High Court to convene a scheme meeting with its users to repay them funds stolen in a $235 million hack in July last year. North Korean Lazarus group was found responsible for the cyberattack.
A scheme meeting is a shareholders’ meeting for a vote on a scheme of arrangement which is a court-approved agreement among the company and shareholders or creditors.
“This decision is a significant step in Zettai’s efforts to distribute assets associated with WazirX to users, and to revive operations of the platform. The Court granted a 16-week moratorium to Zettai, which provides the necessary time and legal protection to carry out the restructuring process,” the company said in a statement on Thursday.
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Moreover, the court also granted permission to vary the scheme meeting process, which is intended to streamline the process and facilitate the participation of more users in the scheme meeting.
The creditors’ meeting is scheduled to be held online, with voting on the proposed scheme of arrangement to take place thereafter electronically. The company said it will notify creditors of details of this process shortly.
The scheme establishes a structured approach for reorganizing the liabilities associated with WazirX to optimize returns for all platform users. Also, the liquid assets will be distributed in tokens to scheme creditors within 10 business days of the effective scheme date.
The scheme includes the issuance of recovery tokens (RTs) and distribution of recoveries through RT purchase mechanisms. It also has plans for strategic reactivation of the WazirX platform.
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The company said available net profits generated during a 36-month period would be used to fund RT purchases under the scheme.
“I thank the court for granting us leave to convene the scheme meeting and for acknowledging our efforts. We are leaving no stone unturned to facilitate recovery to the users at the earliest and appeal to the users to vote in favour of the scheme,” said Nischal Shetty, Founder, WazirX.
Last week, WazirX said it has frozen the first tranche of assets that were stolen during the cyberattack worth around $3 million USDT (Tether cryptocurrency) as part of the ongoing recovery efforts following last year’s attack.
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