WazirX Creditors to Vote on $235M Hack Recovery Plan – Will the Exchange Survive?
Fate of 4.4 Million Creditors Hangs in the Balance as Vote Determines WazirX’s Future
After suffering a massive $235 million hack in July 2024, WazirX is now at a critical juncture. Creditors are set to vote on a restructuring plan that could either pave the way for the exchange’s revival or push it into liquidation under Singapore’s Companies Act.
If approved, WazirX could resume trading by April 2025, with initial payouts to creditors expected within 10 business days. However, a rejection could lead to years of delays in repayments, leaving affected users uncertain about the fate of their funds.
WazirX Warns: Approve the Plan or Face Payment Delays Until 2030
In a stark warning, WazirX has urged creditors to accept the restructuring proposal, cautioning that failure to do so could result in repayment delays stretching until 2030.
The plan proposes:
- Immediate settlement of 52% of debts
- The remaining 48% to be covered through future profits and asset recoveries
Rather than opting for immediate liquidation, WazirX believes this approach offers a structured repayment that benefits both the company and its creditors.
How WazirX Plans to Recover
To restore financial stability, WazirX has laid out a multi-faceted recovery strategy:
- Launching a decentralized exchange (DEX) to generate new revenue streams
- Introducing recovery tokens to improve liquidity and investor confidence
- Freezing $3 million in assets as part of its ongoing recovery efforts
Singapore High Court Grants Approval for Voting Process
The Singapore High Court has approved WazirX to proceed with a Scheme meeting, where creditors will vote on the restructuring plan. For the plan to move forward, at least 75% of creditors must vote in favor.
The Committee of Creditors (CoC) has played a crucial role in shaping the plan, ensuring that funds are distributed fairly and efficiently. If the vote passes, creditors can expect initial payouts soon after approval.
What’s at Stake?
With over 4.4 million creditors involved, the outcome of the vote is critical. If rejected, WazirX could face immediate liquidation, leading to prolonged repayment delays and significant market instability.
Conversely, a successful restructuring could:
- Restore confidence in WazirX as a major crypto exchange
- Set a precedent for handling large-scale crypto exchange hacks
- Help stabilize the broader cryptocurrency market
Final Verdict: Can WazirX Survive?
As the voting deadline approaches, all eyes are on WazirX and its creditors. The exchange remains committed to recovering lost funds, working closely with law enforcement and blockchain experts to track stolen assets.
However, whether WazirX emerges stronger or collapses entirely now depends on the creditors’ decision. The next few weeks will determine the fate of the exchange, its users, and the broader crypto industry.
