WazirX users choose between a new refund plan or until 2030

WazirX users must vote on a restructuring plan to recover funds lost in a $235 million hack.
If 75% approve, the exchange will restart in April 2025 and issue recovery tokens for compensation.
If the plan is rejected, WazirX will liquidate assets, potentially delaying fund recovery until 2030 with lower payouts.

WazirX Restructuring plan

WazirX users now face a tough decision. The exchange has offered two paths for fund recovery after a massive hack. In July 2024, North Korean hackers stole $235 million from WazirX. The hack wiped out over 40% of the exchange’s assets. Users have been waiting for a solution ever since.

WazirX is proposing a restructuring plan. If at least 75% of creditors approve, the exchange will restart in April 2025. Under this plan, users will receive recovery tokens. These tokens represent claims on the recovered assets. They will also allow users to benefit from future platform profits.

The plan includes launching a new decentralized exchange (DEX). Recovery tokens can be traded on the market. The platform also promises periodic buybacks using profits and new revenue streams. If the plan goes through, the first payouts will begin within 10 business days of activation. A Singapore court has already approved this restructuring plan.

Two paths, two very different outcomes.

Here's a breakdown of what happens if the Scheme is approved versus if it isn't. Understand what to expect in both scenarios as we approach the voting process. pic.twitter.com/ZcXpC8g79Q
— WazirX: India Ka Bitcoin Exchange (@WazirXIndia) February 4, 2025

Singapore High court approval

However, the alternative is far less attractive. If creditors do not approve the plan, WazirX will move toward liquidation. Liquidation will be done under Singapore’s Companies Act. In this case, users might have to wait until 2030 for any recovery. Liquidation may force a fire sale of assets.

This could lead to lower asset values and reduced compensation for creditors. WazirX warns that a liquidation process may delay repayments further. They note that the distribution of fiat will likely occur at market price, which may not capture any future bull runs.

The Indian crypto community has criticized the proposal. Many feel that WazirX is pressuring users to accept an unfair deal. Users claim that money meant to reimburse them has been spent on legal fees. This adds to their frustration. They argue that the recovery plan benefits WazirX more than its users.

The Aftermath of WazirX

WazirX, once India’s largest crypto exchange, has been in crisis mode ever since the hack. The company has filed for a moratorium in Singapore courts. Its goal is to recover as much of the lost funds as possible. Creditors will vote on the restructuring scheme in the coming weeks. If approved, they may start receiving their stolen crypto as early as April 2025. If rejected, they might face a long wait until 2030.

In summary, creditors face a clear choice. They must vote on a plan that could restart the exchange and issue recovery tokens. Or they risk a delayed and potentially lower recovery through liquidation. This decision will shape the future of fund recovery for millions affected by the hack.