Zettai Moves Forward with Scheme of Arrangement to Ensure Fastest and Fairest Resolution For Creditors

Zettai Pte Ltd (“Zettai”)  announces significant progress in its restructuring efforts aimed at delivering the highest and fastest possible recoveries to creditors of the WazirX Platform. As part of this resolution, Zettai has filed an application with the Singapore Court to convene a meeting of creditors (“Scheme Meeting”) for the purposes of proposing, and if thought suitable, voting on a Scheme of Arrangement (“Scheme”). A Scheme is the fastest, fairest, Scheme Creditor-approved and legally binding resolution to crypto balances with the highest recoveries to Scheme Creditors. The Court has set the hearing date for this application on 22 January 2025.

If the Court grants leave for Zettai to convene the Scheme Meeting, the proposed Scheme must be approved by the requisite majority of creditors and sanctioned by the Court before it is effective.

The proposed Scheme aims to provide liquidity and improve recoveries to Scheme Creditors by rebalancing and distributing the Net Liquid Platform Assets to Scheme Creditors, reactivating the WazirX platform (“Platform”) and potentially starting a New Business to share net profits, and actively pursuing the recovery of Illiquid Platform Assets.

The Scheme is designed to be the fastest and fairest resolution mechanism, balancing liquidity for creditors with opportunities for long-term recovery. Key features include:

• Rebalancing and Distribution of Liquid Assets: Rebalanced Net Liquid Platform Assets will be distributed to Scheme Creditors in tokens, with the first distribution expected within 10 business days of the Scheme Effective Date.
• Tokenization: New Recovery Tokens (RTs) will be issued on a pro-rata basis to Scheme Creditors.
• Surplus Sharing and recovery of Illiquid Wallet Assets and Stolen Assets – Part of the net profits from any New Business (and in the event available to Zettai, net profits associated with the Platform) will be shared with Scheme Creditors and distributed alongside recoveries of Stolen Assets and Illiquid Wallet Assets through pro-rata purchases of RTs for 36 months.
• Platform Reactivation & New Features: Subject to legal and regulatory requirements, Zettai plans to resume operations of the Platform, implement a New Business (a decentralized exchange, or “DEX”), and introduce features such as a specialized OTC desk and staking and futures trading functionality to enhance liquidity and stability.

Court Process and Timeline

The application has been filed with the Singapore Court, seeking leave to convene a Scheme Meeting in a process that will ultimately allow Scheme Creditors to vote on the proposed Scheme. Once the Scheme receives the requisite Scheme Creditor approval, is sanctioned by the Court and the relevant court order is filed with the relevant regulatory authorities, the Scheme will be effective (the “Effective Scheme Date”).

While the Zettai team and its advisors aim to expedite this process, please note that the Scheme Meeting is intended to be carried out in a transparent and fair manner and sufficient time would be needed for Scheme Creditors to participate in the Scheme Meeting and understand the terms of the Scheme. Further, certain timelines are subject to the Court’s schedule.