This article first appeared in The Edge Malaysia Weekly on October 19, 2026 - October 25, 2026

The forced selling of its founder’s shares has dragged Zetrix AI Bhd’s (KL:ZETRIX) share price down to 5.5 sen from 66 sen two months ago. It has also put the company in a potential breach of its RM2 billion sukuk covenant.

The Islamic debt papers require Wong Thean Soon — better known as T S Wong, who owned about 30% of Zetrix in August prior to the selldown of his shares — to be the company’s single-largest shareholder. But Wong’s direct and indirect shareholding had fallen to 1.895% last Thursday, hence the potential breach of covenant.

Zetrix has seven days until Thursday (Oct 22) to remedy the breach. Failure to do so could trigger an event of dissolution, meaning that sukuk principal and accrued profit become due and payable, with the outstanding sum estimated at RM2.16 billion.

Furthermore, Zetrix owes the Road Transport Department (JPJ) some RM314 million, as it failed to remit collections from May to September this year. The omission led to the Ministry of Transport’s suspension of Zetrix and its subsidiary MyEG Sdn Bhd’s three-year contract as a collection agent for JPJ.

As a substantial shareholder and the managing director, Wong must surely have recognised the risk of the current problem when his shares were force-sold in the past weeks. In hindsight, should the board have disallowed Wong from pledging his shares to ensure that he remained the single largest shareholder?

Does Zetrix have RM2.47 billion to pay its sukukholders and JPJ?

Its balance sheet as at June 30 does not seem to suggest it has sufficient financial footing. “At this juncture, the financial and operational/business impact of the breach is still being assessed by the company,” Zetrix said in its bourse filing last Friday.

The company’s blockchain and personal AI development assets, which are booked as development costs of RM3.73 billion, making up 56% of its total assets on the balance sheet. Will these assets (development costs) become obsolete, and how quickly, if Zetrix cannot afford to invest more? Generally, impairment is likely when assets become obsolete, as they no longer hold value.

Besides cash and cash equivalents of RM541.6 million, the company held digital assets of RM532.88 million while receivables totalled RM887 million.

Zetrix stated in its 2025 Annual Report that its digital assets, including Ethereum, Bitcoin, Tether USDt and other stable coins, are measured at fair value based on US dollar quoted prices from various sources at the close of Coordinated Universal Time (UTC).

Values of digital assets fluctuate according to market price. Where does Zetrix keep its digital assets? Are they stored in a self-custody account, an exchange account or a third-party custody account? And who holds the access keys?

All of this points to the vulnerability of its asset value. Some question whether it is a foregone conclusion that Zetrix is heading towards Practice Note 17 status, if not a more severe classification.

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