WazirX Creditors Face Tough Vote: DEX or Fiat by 2030

WazirX Creditors Face Tough Choice in Upcoming Restructuring Vote

WazirX, a once-popular cryptocurrency exchange in India, is facing a critical decision as its creditors prepare to vote on a restructuring plan. The vote, scheduled for an unspecified date, will determine the fate of the exchange and its users' lost crypto holdings.

The restructuring plan, proposed by WazirX, requires the approval of 75% of creditors (by value) to move forward. If approved, the exchange aims to set up a new decentralized exchange (DEX) and recover lost assets, with the possibility of returning them to creditors by 2025. However, if the plan is rejected, creditors may face a lengthy legal process that could potentially result in a fiat-based payout by 2030.

The vote has been portrayed by WazirX as a key event in its major comeback to the market. However, the exchange has presented two unpleasant options for its users to choose from. The first option is to vote "Yes" and back the reorganization plan, which involves setting up a new DEX and hoping that it can recover the lost assets. The second option is to cast a "No" vote and anticipate receiving a payout in fiat currency via the liquidation process, which could take several years.

Both choices involve considerable unpredictability, and many users sense that they are caught in a situation where they inevitably lose in the end, no matter what the result is. The restructuring proposal has raised major concerns due to the absence of strong guarantees. Even if the vote passes, there are no real assurances that the newly structured DEX model will recover lost assets. The exchange has not laid out a clear roadmap that details just how funds will be recovered and returned to the users who were most affected.

The timeline also remains unclear. WazirX states that creditors could start receiving their crypto in April 2025, but the specifics remain murky. How much of the taken funds will actually be returned? And will it be returned in full or in part? This and more has left a lot of creditors in the dark and naturally skeptical of whether this proposal is in their best interests.

This restructuring plan is an attempt by WazirX to regain user trust and reestablish itself as a player in the crypto