WazirX’s Parent Firm Files for Moratorium in Singapore High Court
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Zettai Pte Ltd, the parent company of WazirX, applied to the Singapore High Court On August 27 for a moratorium under Section 64 of the Insolvency, Restructuring and Dissolution Act 2018.
This legal maneuver comes after WazirX’s major cyber attack on July 18, 2024, that resulted in the theft of approximately $230 million (₹2000 crore) worth of cryptocurrency assets.
Simply put, a moratorium temporarily suspends an activity or law until future consideration warrants lifting the suspension.
WazirX made the latest strategic move to buy more time to facilitate restructuring the company’s liabilities through a scheme of arrangement.
The filing automatically triggers a 30-day moratorium, during which the Singapore court will carefully consider whether to grant the requested moratorium and determine its duration.
Just over a month before this legal action, the cyber attack primarily targeted Ethereum-based ERC-20 tokens stored in WazirX’s hot wallets.
In response to the security breach, WazirX suspended all withdrawals, effectively preventing users from accessing their funds.
While this immediate step is necessary from a security standpoint, this decision spread widespread concern and frustration among the platform’s extensive user base.
The moratorium sought by Zettai Pte Ltd serves a crucial purpose in the company’s recovery strategy.
It is designed to provide the beleaguered firm with essential “breathing space” to progress with its complex restructuring efforts.
The legal protection would effectively shield the company from potential
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