$230M Repayment Plan for Hack Victims Gains Support from WazirX Creditors

Crypto exchange WazirX has won strong backing from its creditors for a restructuring plan aimed at compensating victims of its $230 million hack in July 2024.

A total of 93.1% of creditors by count and 94.6% by claim value voted in favor of the Scheme of Arrangement, well above the thresholds set by Singapore’s Companies Act. The vote, held between March 19 and March 28 on the Kroll Issuer Services platform, included over 141,000 verified claims totaling $195.65 million.

Had the proposal failed, WazirX warned it would have faced liquidation proceedings, delaying any potential repayment until 2030 and reducing asset recovery.

Now, with approval secured, parent company Zettai will seek court sanction in Singapore. If granted, WazirX plans to issue initial payouts within 10 business days, followed by a phased reopening of withdrawals and trading services, subject to regulatory approval.

The recovery plan also includes the launch of a decentralized exchange (DEX), the issuance of recovery tokens, and a buyback program supported by future revenue and platform profits.

The hack, attributed to the Lazarus Group, involved the compromise of a private key. WazirX blamed its custody partner Liminal, though Liminal disputed the claim, citing vulnerabilities on WazirX’s side. The stolen funds were laundered through Tornado Cash, complicating recovery efforts.

While full restitution remains unlikely, the approved scheme marks a significant step forward in the exchange’s efforts to make affected users whole.

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