WazirX Legal Dispute: High Court Orders Transparency Amid Binance Ownership Questions
The Delhi High Court has directed WazirX’s owner, Singapore-based Zettai Pte Ltd, to disclose its alleged acquisition agreement with Binance and comply with Singapore court orders within a week. This follows a major $235 million hack of the exchange last July.
High Court Directs Disclosure
On Wednesday, Justice Sachin Datta of the Delhi High Court issued an order compelling Zettai Pte Ltd to file “a copy of its Agreement with ‘Binance'” and all related Singapore High Court proceedings concerning its restructuring plan. The binding directive mandates compliance within a one-week timeframe.
“> The move follows the completion of WazirX’s second vote on its revised restructuring plan, following a reversal of a preliminary rejection by Singapore’s High Court. The current vote period concluded recently after the court mandated a revote.
“Direction to produce the Binance–Zettai deal demonstrates the judiciary’s recognition of users’ right to information and ownership of digital assets,” said creditor Kunal Dhariwal.
Complex Ownership at the Core
Compounding the fallout from last summer’s cyberattack that drained customer funds, the ownership structure of WazirX remains a subject of intense scrutiny. Petitioners seeking compensation have publicly called out a potential culpable role from external entities.
Specifically, WazirX creditors file a petition questioning Binance’s involvement. Binance publicly denied in September 2024 that it ever finalized the acquisition of WazirX, stating the exchange operator never owned or controlled the platform despite initial contractual discussions in the past.
The ongoing court cases are increasingly directed at establishing the legal status and responsibilities assigned to Zettai, the current Singapore-incorporated entity operating the Indian-facing WazirX platform.
Creditors’ Demand for Investigation
Seeking accountability for the catastrophic July 2024 hack, WazirX creditors have formally asked the Delhi High Court to establish a Special Investigation Team (SIT). The petition, filed by Sudhir Verma and Kunal Dhariwal in October 2024, challenges the adequacy of WazirX’s response to the security incident.
“It should comprise members from various regulators and agencies with expertise in financial fraud, economic offenses, and cybercrime,” stated legal partner Rithik Dhariwal.
The proposed SIT would possess the authority to probe the hack and collaborate with relevant foreign agencies. “Lead petitioner Verma told Decrypt that ‘any malfeasance uncovered will be addressed firmly,'” the publication paraphrased.
Muddled Restructuring Process
Recovering from the financial blow inflicted by the hack has proved maddeningly complex. Immediately following the incident, Zettai initiated creditor voting on a restructuring plan, a standard corporate rescue mechanism in the face of insolvency.
Only 3.3% of total creditors participated in the initial vote, an unrepresentative showing. After Singapore’s High Court upheld aspects but ultimately rejected the proposal on June 4, a complete revote became necessary before an amended plan could be put forward and finalized.
The restructuring saga continues: An August hearings schedule includes further reviews by both the Singapore Courts and the Indian High Court (where the petition for SIT investigation gained traction), with intervention from the Reserve Bank of India (RBI) becoming evident well into the process.
