Zettai, the parent company of WazirX, is currently in discussions with 11 major cryptocurrency exchanges and trading firms in an effort to secure emergency funding or establish partnerships to recover the $235 million lost in a hacking incident that occurred in July, as reported by the Economic Times.
During a townhall meeting on Monday, WazirX co-founder Nischal Shetty mentioned that they are actively engaging with potential investors, referred to as "white knights," to assist with funding. However, even with the support of these investors, it is unlikely that investors will receive full compensation for the losses incurred due to the cyberattack.
Jason Kardachi, managing director at Zettai's advisory firm Kroll, stated that in crypto terms, it is highly improbable to fully reimburse investors. At best, they could potentially return between 55% and 57% of the funds lost.
Zettai Consults 11 Major Trading Platforms After $230M WazirX Hack
The 11 trading firms that Zettai is engaging with reportedly each serve a user base of 5.5 million to 100 million users and process daily transactions ranging from $5 million to $4 billion.
These discussions follow Zettai's application for a moratorium to the Singapore High Court last week. The moratorium request was prompted by a significant cyberattack on WazirX on July 18, resulting in the theft of over $230 million in cryptocurrency assets.
WazirX Restructuring Process to Span Six Months As Ownership Uncertainty Lingers
Shetty also stated that the restructuring process for WazirX is expected to take at least six months due to the extensive work involved in crafting the plan. Input from WazirX's 4.3 million creditors is essential in this process.
During the townhall meeting, a slide was presented by Shetty highlighting the ownership dispute between Zettai and binance. The unclear ownership situation has created ambiguity regarding the contractual counterparty for users with crypto balances on the platform.
Shetty mentioned that innovative solutions are being explored to resolve the ownership dispute without necessitating a third party to take over the platform. This approach is crucial as the ongoing ownership conflict makes a third-party takeover unviable.
Since the acquisition by binance in 2019, Zettai, through Zanmai Labs, has managed WazirX. However, binance's ownership has been a subject of public scrutiny since 2022. The current dispute involves legal battles over ownership, asset control, and operational rights, with Zettai overseeing WazirX's asset management during this period of contention.
