WazirX Pushes Creditors to Accept Recovery Plan or Risk Waiting Until 2030 for Compensation From Massive Hack

WazirX Faces Critical Vote: Creditors to Choose Between Early Payouts or Waiting Until 2030 for Full Refunds

WazirX, India’s former leading cryptocurrency exchange, is asking creditors to vote on a pivotal restructuring plan following the $230 million hack by North Korea’s Lazarus Group in July 2024. The exchange is offering creditors two options: either approve a recovery plan that could begin payouts in April 2025 or wait until 2030 for a refund through a liquidation process.

If the proposed plan is accepted by 75% of creditors (by value), WazirX will reactivate its trading platform and begin issuing refunds within 10 business days, using liquid assets for initial payouts. The strategy includes the creation of a decentralized exchange (DEX) and the issuance of recovery tokens that could be traded and bought back over time using the platform’s future profits.

In the event that the recovery plan is rejected, the company will move toward liquidation under Singapore’s Companies Act. This scenario could result in the forced sale of assets at lower market values, leading to significantly reduced compensation for creditors as the liquidation process drags on.

The exchange, which once commanded a major portion of India’s crypto market, has struggled to regain trust and funds after the attack. Despite facing harsh criticism for its management of the crisis, it secured a court-approved restructuring plan to avoid total liquidation.

Now, WazirX creditors must decide whether to risk a lengthy and uncertain wait or take part in a potential recovery process that might offer partial repayment sooner than anticipated.