WazirX Creditors Approve Revised Restructuring Plan After $234M Hack

Nearly 95% of creditors on crypto exchange WazirX have approved a revised restructuring plan following a $234 million security breach last year, marking a significant step forward in the platform’s recovery efforts. The plan was put to a second vote after the Singapore High Court rejected the initial proposal due to regulatory concerns. This approval came after the participation of approximately 150,000 creditors, representing over $206 million of affected funds [1].

Under the new plan, WazirX continues to use a recovery token model, where users receive tokens representing unrecovered balances. These tokens will be gradually repurchased using profits and recovered assets, with token holders eligible for periodic payouts. This mechanism is intended to provide a sustainable path toward repayment while preserving liquidity [1].

A key change in the revised plan involves the shift in operational responsibility from WazirX’s Singapore-based parent company, Zettai, to Zanmai India, a firm regulated by India’s Financial Intelligence Unit. Additionally, WazirX established Zensui Corporation in Panama to manage services previously conducted from Singapore. These moves are likely intended to navigate regulatory challenges and provide a more stable operational foundation [1].

WazirX founder Nischal Shetty has indicated that if the Singapore High Court approves the plan, operations could restart and user compensation begin within 10 days—substantially faster than the earlier two to three-month estimate provided by restructuring advisor George Gwee of Kroll. However, should the court reject the proposal, repayments could be delayed until 2030, with liquidation of assets becoming the only alternative. This has raised concerns among users about the shifting corporate structure and potential delays [1].

Some users also question whether the new arrangement may disadvantage those whose unaffected tokens have increased in value since the hack, while others remain skeptical about the long-term viability of the recovery plan. The revised structure must still secure approval from the Singapore High Court, though WazirX has not yet announced an updated timeline for when user compensation may begin [1].

Source: [1] WazirX Users Approve New Restructuring Plan After $234M Hack (https://coinmarketcap.com/community/articles/68a54b7ca930b43bad865eb0/)