Delhi Court Mandates WazirX Parent to Reveal Binance Deal and Restructuring Plan

The Delhi High Court has mandated Zettai Pte Ltd, the Singapore-based parent company of crypto exchange WazirX, to disclose its agreement with Binance and share details of its restructuring plan within a week. The order follows ongoing legal proceedings initiated by creditors Sudhir Verma and Kunal Dhariwal, who seek transparency in the aftermath of a $235 million cyberattack on WazirX in July 2024[1]. Justice Sachin Datta directed Zettai to submit the Binance agreement and all related court proceedings from Singapore, where WazirX’s restructuring process is being administered[1].

This development comes after the Singapore High Court recently overturned an earlier rejection of WazirX’s restructuring plan and ordered a revote, which was completed on August 6. The revised proposal saw participation from a larger portion of creditors compared to the first vote, in which only 3.3% of total creditors had participated. The latest round of voting was conducted on a secure, third-party platform—Kroll Issuer Services—and is being independently verified by consulting firm Alvarez & Marsal[1]. The outcome of the restructuring will play a key role in determining how WazirX proceeds with debt settlement and recovery.

The court’s intervention highlights increasing scrutiny over WazirX’s corporate structure and response to the hack. Binance has repeatedly denied acquiring the platform, despite an initial contract, and criticized WazirX’s attempts to shift responsibility for the incident. Binance maintains it never owned, controlled, or operated WazirX[1]. Meanwhile, creditors are pushing for a Special Investigation Team (SIT) to be formed, composed of experts in financial fraud, economic offenses, and cybercrime, with authority to collaborate with international counterparts. The team would investigate the cyberattack and any potential malfeasance[1].

The Delhi High Court has also drawn in India’s central financial regulators, including the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI), by directing them to explain their regulatory mechanisms and actions taken against WazirX. This marks a significant shift in the legal and regulatory landscape surrounding crypto platforms in India, as stakeholders seek accountability and clearer oversight[1]. Kunal Dhariwal, one of the lead petitioners, emphasized that the court’s order reflects a recognition of users’ rights to information and ownership of digital assets. With the RBI now involved, there is renewed hope for a meaningful regulatory response that could set a precedent for the crypto sector in the country[1].

The next court hearing is scheduled for August 26, with RBI officials required to be present. The restructuring and investigation processes remain ongoing, and the outcome will likely influence how WazirX regains user and institutional trust. The court’s emphasis on transparency and creditor involvement underscores the growing legal and financial stakes for crypto exchanges operating in a largely unregulated space.

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[1]title:Delhi High Court Orders WazirX Operator to Disclose Binance Agreement, Restructuring Plan (url:https://decrypt.co/333767/delhi-high-court-orders-wazirx-operator-to-disclose-binance-deal)