tl;dr
The Delhi High Court has ordered Zettai Pte Ltd, owner of crypto exchange WazirX, to produce its acquisition agreement with Binance and disclose its restructuring scheme following a $235 million hack in 2024. The court directed filing the agreement and related Singapore High Court proceedings within...
The Delhi High Court has ordered Zettai Pte Ltd, the Singapore-based owner of crypto exchange WazirX, to produce its acquisition agreement with Binance and disclose details of its restructuring scheme. This move follows a $235 million hack last year, with creditors pushing for greater transparency. Justice Sachin Datta issued the directive to file the agreement and related Singapore High Court proceedings within one week.
This order comes amid heightened scrutiny over WazirX’s ownership and its efforts to recover from the cyberattack that drained millions in user funds in July 2024. The court's intervention coincides with WazirX concluding a revote on its amended restructuring plan after the Singapore High Court overturned an earlier rejection. Ownership remains disputed as Binance publicly denied completing the acquisition, calling WazirX’s claims that it shifted responsibility a “disappointing deflection tactic.” Binance insists it never owned or controlled the platform despite signing an initial contract.
Creditors Sudhir Verma and Kunal Dhariwal, who filed the petition in October 2024, have challenged WazirX’s handling of the hack aftermath. In January, the Delhi High Court issued notices to over 10 respondents, including regulatory bodies like RBI and SEBI, to explain regulatory mechanisms overseeing crypto platforms and actions taken against WazirX. Dhariwal highlighted the court's direction as a recognition of users' rights to information and digital asset ownership, expressing hope for a meaningful regulatory response as the RBI joins the discussion.
The petitioners, represented by advocates Navodaya Singh Rajpurohit, Rithik Dhariwal, and Dhawesh Pahuja, are pushing for the creation of a Special Investigation Team to probe the cyberattack. Rajpurohit, a legal partner at Web3 consulting firm Coinque Consulting, advocates for a multi-regulator team with expertise in financial fraud, economic offenses, and cybercrime, authorized to collaborate internationally to uncover the full extent of the incident and ensure accountability.