Majority of WazirX creditors supported the exchange’s restructuring plan

What’s new? More than 93% of creditors of Indian crypto exchange WazirX have voted in favor of a restructuring following the $230 million hack in July 2024 that will allow them to partially recover lost assets. More than 141 000 creditors, whose total claims total $195,65 million, participated in the vote on the Kroll Issuer Services platform between March 19 and March 28.

Voting results

What else is known? 131 659 creditors with claims totaling $184,99 million supported the restructuring. The figures were 93,1% of the total number of creditors and 94,6% of the value of their claims, satisfying Singapore law that a bankrupt company can restructure with a majority in number and 75% in value of claims. Zettai, the parent company of the exchange, is based in Singapore.

Had the restructuring not been approved, the company would have been forced to launch a liquidation process, which could have reduced the amount of payments to creditors and pushed back the deadline to 2030, as the WazirX team warned in February.

Japanese crypto exchange DMM Bitcoin will be liquidated after a $320 million hack

The funds will be returned to customers through a third-party trading platform within the SBI Group

Read more

Zettai now plans to seek approval for the restructuring from the Singapore court. If approved, the first payments will be made to creditors within 10 business days, followed by phased resumption of withdrawals and trading functions, subject to regulatory compliance.

The recovery plan includes launching a decentralized exchange (DEX), issuing recovery tokens that can be sold, and periodically buying back recovery tokens from users by WazirX itself from the platform’s profits and other revenue sources.

WazirX users lost funds as a result of an attack by Lazarus, a hacker group affiliated with the North Korean government. This became possible due to the interception of the private key, in the leak of which the exchange accused the custodial partner Liminal. Liminal denied the claim, responding by pointing to vulnerabilities on the WazirX side.

Treasure DAO will restructure to maintain operations in the face of declining revenues

The community will focus on supporting key projects and reducing some staff members

Read more

The hackers laundered all the stolen funds using the crypto mixer Tornado Cash, making it impossible to fully recover them.