Key Takeaways
- Voting on the restructuring plan is set to take place in the coming weeks, with approval requiring a minimum of 75% of creditors by value.
- If the restructuring plan is approved, WazirX will resume trading operations, distribute initial refunds in April 2025
Indian crypto exchange WazirX has informed creditors that repayments following its $235 million hack could be delayed until 2030 if they do not approve its proposed restructuring plan. The exchange, which was hacked in July 2024, has been working on a court-approved plan to compensate affected users while attempting to relaunch its operations.
The hack, attributed to the North Korean-linked Lazarus Group, resulted in the loss of more than 40% of WazirX’s assets. The stolen funds were reportedly laundered through Tornado Cash, making recovery efforts challenging. Following the breach, WazirX halted trading and sought legal protection in Singapore, where it filed for a moratorium to prevent immediate liquidation. In January 2025, the Singapore High Court approved the company’s restructuring plan, which WazirX argues offers a better outcome for creditors than liquidation.
The exchange has presented creditors with two options. If the restructuring plan is approved, WazirX will resume trading operations, distribute initial refunds in April 2025, and introduce a profit-sharing model linked to the launch of a new decentralized exchange (DEX). The company has proposed issuing “recovery tokens,” which will represent creditors’ claims and allow them to benefit from recovered assets and future platform revenue.
If the plan is rejected, WazirX has stated that creditors may have to wait until 2030 to receive compensation through a liquidation process. The exchange warned that liquidation under Section 301 of Singapore’s Companies Act could result in assets being sold at lower values, potentially reducing the final payouts to creditors. Additionally, liquidation could involve extended legal disputes over asset ownership, further delaying the recovery process.
The company has emphasized that court-approved restructuring is the fastest way to begin returning funds. If the plan moves forward, WazirX has pledged to distribute net liquid assets within 10 business days of activation. It estimates that creditors could recover up to 80% of their lost balances through this approach. However, if liquidation proceeds, creditors face prolonged delays and uncertainty, with no guaranteed timeline for repayments.
This is not the first time WazirX has suggested launching a new platform as part of its recovery efforts.
A previous proposal for a DEX-linked repayment model was met with skepticism from users, who viewed it as an attempt to push them into another WazirX-operated business without direct fund recovery. The current restructuring plan has also faced criticism for linking repayments to a new venture rather than offering immediate reimbursements.
Voting on the restructuring plan is set to take place in the coming weeks, with approval requiring a minimum of 75% of creditors by value.
