WazirX has called on creditors to approve a restructuring plan to receive payouts in April

If the plan gets less than 75% of the votes, the distribution of compensation could be suspended until 2030

04.02.2025 - 15:55

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2 min

What’s new? Indian crypto exchange WazirX has urged creditors to vote in favor of a restructuring plan previously approved by a Singapore court. If at least 75% of votes are cast in favor of it, creditors could start receiving compensation as early as April this year.

Source: X.com

What else is known? The plan involves launching a decentralized exchange (DEX), issuing debt tokens that can be traded, and conducting periodic buybacks of the asset using the platform’s profits and new revenue streams.

The exchange’s managers have warned that if the plan is not approved, compensation distributions will be suspended for the next five years.

So, instead of relaunching, WazirX will be forced to start liquidation proceedings under Singapore law with a low-value asset sale, which will reduce the amount of compensation and push back the timing of its payments to around 2030.

ZachXBT analyst talks about the $8 million exploit of the Noones P2P marketplace

The platform was attacked back at the beginning of the year, but the developers did not report it publicly

WazirX, once India’s largest crypto exchange by trading volume, was hacked by the North Korean hacker group Lazarus in July 2024 and lost $230 million in user funds as a result.

The stolen funds amounted to more than 45% of the exchange’s total reserves, making it unable to maintain full collateralization of client assets and suspending operations.

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

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