Indian crypto exchange WazirX has presented its creditors with a restructuring scheme to recover funds lost in a $230 million hack in July 2024. The exchange, once India’s largest by trading volume, was targeted by North Korean hacker group Lazarus, leading to a significant loss of user funds.
Creditor Vote Determines Payout Timeline
WazirX’s creditors now face a crucial decision that will determine the timeline for receiving their stolen crypto. If more than 75% of voting creditors approve the restructuring scheme, it will become effective in April 2025, allowing the platform to restart trading operations and begin initial payouts within 10 business days.
However, if the scheme fails to garner sufficient support, the process will move towards liquidation under Singapore’s Companies Act. This could result in a fire sale of assets and potentially lower compensation for creditors due to reduced asset values and delays in the process.
Recovery Plan Includes DEX Launch and Token Buyback
As part of its refund plan, WazirX intends to launch a decentralized exchange (DEX) and issue tradable recovery tokens. The platform aims to periodically buy back these tokens using profits and new revenue streams, gradually compensating affected users.
Criticism Surrounds WazirX’s Crisis Management
WazirX has faced criticism for its handling of the crisis, particularly regarding user communication and fund recovery processes. The exchange filed for a moratorium in Singapore courts and received approval for a restructuring plan in January 2025, narrowly avoiding total liquidation.
The outcome of the creditor vote will have significant implications for WazirX’s future and the recovery of user funds. As the situation unfolds, the crypto community will be closely watching to see if the exchange can successfully navigate this challenging period and restore user confidence.
Tags: WazirX, crypto hack, creditor recovery, restructuring plan, Lazarus Group
Source: https://www.coindesk.com/markets/2025/02/04/wazirx-says-accept-new-scheme-or-wait-until-2030-for-refunds-of-usd230m-hack
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