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 Koreaโs 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 Singaporeโs Companies Act, which could significantly delay and reduce payouts.
๐จUPDATE: WAZIRX CREDITORS TO VOTE ON RESTRUCTURING PLAN AFTER $235M HACK, FEATURING AN OPTION TO WAIT TILL 2030 FOR A POTENTIAL LIQUIDATION PAYOUT IN FIAT AFTER LENGTHY LEGAL BATTLES
— BSCN Headlines (@BSCNheadlines) February 4, 2025
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.
๐ช๐ฎ๐๐ถ๐ฟ๐ซ ๐ฐ๐ฟ๐ฒ๐ฑ๐ถ๐๐ผ๐ฟ๐ ๐ต๐ฎ๐๐ฒ ๐๐ผ ๐๐ฎ๐ถ๐ ๐๐ป๐๐ถ๐น ๐ฎ๐ฌ๐ฏ๐ฌ ๐ณ๐ผ๐ฟ ๐ฟ๐ฒ๐ฝ๐ฎ๐๐บ๐ฒ๐ป๐๐ ๐ฑ
— Wise Advice (@wiseadvicesumit) February 4, 2025
WazirX is giving 2 conditions to creditors.
1๏ธโฃ Vote Yes to support #WazirX in launching a DEX and get profit share.
2๏ธโฃ Vote No and wait until 2030 to get your hard-earnedโฆ pic.twitter.com/74OGozfWpc
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 WazirXโs financial and reputational struggles since the hack, the vote will determine whether creditors recover funds sooner or face prolonged uncertainty.