WazirX to Creditors: Vote Yes for Refunds or Wait Until 2030

Last Updated on February 4, 2025

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Wazirx logo seen on a computer screen through a magnifying glass. Source: Dennis - stock.adobe.com

Key Takeaways:

  • Creditors Vote: WazirX creditors must decide whether to approve a restructuring plan allowing payouts from April 2025 or risk delayed refunds until 2030.
  • Restructuring vs. Liquidation: Approval (75% majority required) would enable a DEX launch, recovery tokens, and buybacks; rejection could force liquidation with lower returns.
  • Hack Fallout: The $230M Lazarus Group hack devastated WazirX, prompting legal battles and financial struggles, with this vote crucial for its future.

WazirX creditors face a critical decision on whether to approve a restructuring plan or risk waiting until 2030 for potential refunds.

The Indian crypto exchange, which suffered a $230 million hack by North Koreaโ€™s Lazarus Group in July 2024, is offering creditors two options: approve a recovery plan and receive payouts as early as April 2025, or reject it and force the company into liquidation under Singaporeโ€™s Companies Act, which could significantly delay and reduce payouts.

The proposed restructuring plan includes launching a decentralized exchange (DEX), issuing recovery tokens, and implementing a buyback program using platform profits.

If at least 75% of creditors (by value) approve the plan, it will take effect following Singapore court approval, allowing WazirX to resume trading and begin distributing funds within 10 days of activation.

However, if creditors reject the proposal, the exchange will be liquidated under Section 301 of the Singapore Companies Act, leading to a potential “fire sale” of assets at lower values, resulting in reduced payouts.

Given WazirXโ€™s financial and reputational struggles since the hack, the vote will determine whether creditors recover funds sooner or face prolonged uncertainty.

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