WazirX to Distribute $235 Million to Users After Final Vote

WazirX, a prominent Indian cryptocurrency exchange, is on the verge of distributing over $235 million to its users as it nears the completion of its recovery process following a significant cyberattack. The exchange has finalized its restructuring efforts in Singapore and is set to hold a final vote that will activate the fund payout plan. This vote is crucial as it will approve a minor but necessary adjustment to the restructuring scheme, transferring the responsibility for fund distribution to Zanmai India. Zanmai, registered with India’s Financial Intelligence Unit, will oversee the distribution process directly, eliminating the need for offshore operations.

According to Nischal Shetty, co-founder of WazirX, although 91 percent of creditors had already supported the initial plan, the change in distribution responsibilities requires a new round of voting. This final vote will formally endorse the updated distribution strategy and initiate the next phase of user reimbursements. The exchange faced a substantial asset shortfall post-hack and opted for a phased recovery approach to return user funds over time, unlike other exchanges that absorbed losses using reserves. Court documents revealed a 45 percent gap between WazirX's assets and liabilities.

To rebuild user trust, WazirX plans to implement a Proof-of-Reserve system upon resuming operations. This system will publicly display the company’s holdings, demonstrating solvency on an ongoing basis. With the restructuring framework now in place, the upcoming vote is the final hurdle before user funds can begin returning. WazirX is expected to announce the revote date soon, with distributions anticipated to commence within weeks of approval.

The exchange continues to navigate challenges, including competition from rivals like Binance, which has expanded its presence in India with proper licensing. Additionally, WazirX is addressing legal actions from certain creditors in Singapore. Despite these hurdles, the management team remains focused on restarting operations and prioritizing user payouts. Shetty emphasized that completing the revote and restoring access to funds is the company’s top priority.