Nischal Shetty, founder of WazirX,
described the approval as a key milestone in the exchange's recovery journey. The sanction represents one of the fastest restructurings in the global crypto industry despite the platform suffering one of the biggest cyberattacks in the sector's history, according to Shetty.
Token distributions will begin once operations restart, with the exchange projecting that users could recover 75% to 80% of their account balances at the time of the hack. The recovery will utilize a token-based system that allows creditors to reclaim a substantial portion of their frozen crypto assets.
The court approval followed a turbulent legal process. Singapore's High Court initially rejected Zettai's restructuring plan in June before reversing course in July and ordering a revote on an amended version. Only 3.3% of creditors participated in the first vote, prompting modifications to the scheme.
Timeline estimates for fund distribution vary among key figures. Shetty indicated in August that users could receive their funds within 10 days of the scheme taking effect. However, George Gwee, a director at restructuring firm Kroll working with WazirX,
suggested users might need to wait two to three months after approval before receiving funds.
The Bombay High Court ruled last week that Indian crypto exchange CoinSwitch can secure its stolen assets held on WazirX. The decision dismissed objections from Zanmai Labs, the Indian entity operating WazirX and a subsidiary of Zettai, allowing CoinSwitch to protect approximately $5 million in frozen funds.
The Delhi High Court ordered Zettai in August to produce its acquisition agreement and disclose restructuring scheme details as creditors pushed for transparency following the hack. WazirX had not published definite estimates for when repayments will begin at the time of the court's Monday approval.
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