WazirX restructuring is advancing after 95% of voting creditors approved an amended plan to restart the exchange and begin repaying users affected by the $234 million 2024 hack; if the Singapore High Court approves, distributions could start within 10 days of the scheme taking effect.
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95% of voting creditors approved the amended restructuring plan
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Amended plan shifts compensation management to Zanmai India and repurchases recovery tokens using exchange profits.
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Nearly 150,000 creditors voted, representing over $206 million of the lost funds.
WazirX restructuring: 95% of creditors approve amended plan to restart exchange and repay users after $234M hack. Learn next steps and timeline.
WazirX has been trying to get a restructuring plan through the Singapore High Court to start returning funds to users impacted by the $234 million hack in 2024.
WazirX restructuring progress: Crypto exchange WazirX users are potentially one step closer to recovering funds more than a year after a $234 million hack of the exchange — with 95% of voting creditors greenlighting a new restructuring plan that the Singapore High Court previously rejected. The vote covered nearly 150,000 creditors representing over $206 million in claims.
WazirX lost $234 million of crypto from a Safe Multisig wallet in mid-July 2024 in an attack attributed to North Korean hackers. The breach forced the exchange to pause all crypto and Indian rupee withdrawals.
What does creditor approval mean for WazirX fund recovery?
Creditor approval means the amended scheme can now be submitted to the Singapore High Court for judicial approval. If the court approves, WazirX founder Nischal Shetty says the exchange would restart and begin compensating users within 10 days of the scheme taking effect. This contrasts with prior estimates of a 2–3 month timeline from restructuring advisers.
How were creditors informed and who voted?
Nearly 150,000 creditors cast ballots between July 30 and Aug. 6. WazirX reports the votes represented over $206 million of the lost funds. The earlier April scheme had been approved by users but was rejected by the Singapore High Court due to concerns about how recovery tokens would be treated under proposed regulations for Digital Token Service Providers.
Why did WazirX amend the plan and what changed?
The amended plan changes which entity will manage compensation and clarifies token repurchase mechanics. Recovery tokens will still represent outstanding claims and be repurchased using net profits from the exchange, but distributions will be managed by Zanmai India, a reporting entity under India’s Financial Intelligence Unit.
WazirX parent company Zettai, previously based in Singapore, incorporated Zensui Corporation in Panama and transferred cryptocurrency-related operations after the High Court ruling. The amended scheme addresses earlier regulatory concerns and the operational changes by specifying the reporting entity that will handle distributions.
When might users actually receive funds back?
Timeline depends on Singapore High Court approval and operational readiness. If the court approves, WazirX founder Nischal Shetty indicated distributions could begin within 10 days of the scheme taking effect. Kroll’s director George Gwee previously estimated a 2–3 month wait after court approval in an earlier town hall.
What are recovery tokens and how will they work?
Recovery tokens represent remaining claims not covered by initial distributions and track a user’s outstanding balance. Holders are expected to periodically receive additional distributions funded by WazirX profits and recovered assets. The tokens are intended as an ongoing mechanism to repay creditors over time.
Are users satisfied with the outcome?
Reactions are mixed. Some users on X and Reddit welcomed the vote as a pathway to recovery and closure. Others remain frustrated by delays, regulatory uncertainty, and the transfer of operations. Some argue holders of unaffected coins lose value as token prices rose post-breach. Legal actions were previously sought by victims, but an April 16 Supreme Court of India judgment dismissed one petition on grounds the court cannot decide crypto policy.
Frequently Asked Questions
How many creditors voted on the WazirX restructuring plan?
Nearly 150,000 creditors voted between July 30 and Aug. 6, representing over $206 million of the stolen funds, according to WazirX reports.
What regulatory hurdle caused the previous plan to be rejected?
The Singapore High Court raised concerns about how recovery tokens would be affected by proposed regulatory rules for Digital Token Service Providers, leading to the earlier plan’s rejection.
Key Takeaways
- Creditor approval secured: 95% of voting creditors backed the amended restructuring plan.
- Compensation mechanism clarified: Zanmai India will manage distributions, and recovery tokens will be repurchased using exchange profits.
- Next step is judicial approval: The Singapore High Court must approve the scheme before distributions can begin.
Conclusion
WazirX restructuring has cleared a major creditor vote, moving the exchange closer to restarting operations and repaying victims of the $234 million 2024 hack. The scheme shifts distribution management to Zanmai India and relies on recovery tokens and net profits for repayments. The immediate next milestone is Singapore High Court approval; if granted, repayments could begin quickly.
