Get 125% / $2,500 on 1st deposit!
New players only. Exclusive Welcome Bonus of up to $2,500
WazirX creditors are set to decide their financial fate in the coming weeks. A critical vote will determine whether they receive their stolen crypto as early as April 2025 or potentially have to wait until 2030.
The hacked Indian crypto exchange has proposed a restructuring scheme that requires approval from at least 75% of voting creditors by value. If the vote passes, the plan will take effect in April 2025, in line with a Singapore court’s prior ruling. WazirX confirmed this in a recent X post.
If approved, the exchange will resume trading, and initial payouts will be made within 10 business days. The repayment plan includes distributing net liquid assets and introducing a decentralized exchange (DEX). Additionally, WazirX plans to issue recovery tokens that can be traded, with a periodic buyback mechanism funded by platform profits and new revenue streams.
If creditors reject the plan, WazirX will face liquidation under section 301 of the Singapore Companies Act. This could result in a forced asset sale at lower market prices, reducing payouts for creditors. The company has warned that liquidation may lead to significant delays and lower recovery rates.
WazirX, once India’s largest crypto exchange by trading volume, suffered a major setback in July 2024 when North Korean hacker group Lazarus stole over $230 million from user accounts. The hackers funneled the stolen assets through Tornado Cash, making fund recovery challenging, as CoinDesk reported in September.
Despite efforts to restore lost funds, WazirX has struggled with both financial and reputational damage. Critics have called out the platform for its crisis management and lack of clear communication with affected users. In January, the company secured a Singapore court’s approval for its restructuring plan, aiming to prevent complete liquidation.
As the voting deadline approaches, creditors must decide whether to support the recovery plan or risk prolonged delays and diminished compensation.