WazirX Creditors Approve Restructuring Plan Amid Regulatory Adjustments

WazirX creditors have taken a major step forward in the cryptocurrency exchange's restructuring process after 95% of voting creditors approved an amended plan to restart the platform and begin repaying affected users [1]. The vote, which took place between July 30 and August 6, saw nearly 150,000 creditors participate, representing over $206 million of the $234 million lost in a 2024 hack attributed to North Korean hackers [1]. The original restructuring plan had been rejected by the Singapore High Court due to regulatory concerns regarding the handling of recovery tokens under proposed Digital Token Service Providers regulations [1].

The revised plan addresses these regulatory concerns by shifting the management of compensation to Zanmai India, an entity under India’s Financial Intelligence Unit. Recovery tokens—representing outstanding claims—will now be repurchased using net profits from the exchange’s operations [1]. This structural adjustment aims to ensure compliance with regulatory requirements while providing a mechanism for ongoing fund recovery.

If the Singapore High Court grants its approval, the restructuring plan could allow WazirX to resume operations and begin repaying users within 10 days of the court’s decision, a timeline that contrasts with earlier estimates of 2–3 months from restructuring advisers [1]. The court’s approval remains the final hurdle before users begin receiving compensation. The WazirX parent company had previously restructured its operations by incorporating Zensui Corporation in Panama and transferring cryptocurrency-related operations following the High Court’s initial rejection [1].

Recovery tokens play a central role in the revised plan, serving as an ongoing mechanism to distribute funds to creditors over time. These tokens will track users’ outstanding balances and enable periodic payouts funded by WazirX’s profits and recovered assets [1]. While some users have welcomed the vote as a critical step toward closure, others remain frustrated by the delays and uncertainty surrounding the process [1].

The mixed public reaction highlights the complexity of the situation. Some users have expressed hope that this restructuring will provide resolution, while others have criticized the transfer of operations and the impact on unaffected coins. Legal actions had previously been pursued by victims, but an April 16 ruling by India’s Supreme Court dismissed a petition on the grounds that the court cannot intervene in crypto policy [1].

With the creditors' approval secured, the next major milestone is the Singapore High Court’s judicial review of the revised plan. The court’s decision will determine whether WazirX can proceed with its recovery efforts and begin repaying affected users, potentially marking the end of a long and challenging period for the exchange and its stakeholders.

Source: [1] WazirX Creditors May Approve Restructuring, Singapore Court Approval Could Allow User Payouts; Ether Cited August 20, 2025 (https://en.coinotag.com/wazirx-creditors-may-approve-restructuring-singapore-court-approval-could-allow-user-payouts-ether-cited/)