WazirX Restructuring Plan Secures 95.7% Creditor Support Awaits Court Approval

Indian cryptocurrency exchange WazirX has secured robust support for its revised restructuring plan, with 95.7% of participating creditors endorsing the proposal, representing $195.7 million of the $206.9 million in validated claims [1]. The overwhelming backing follows a voting period conducted between July 30 and August 6, 2025, with eligibility restricted to account holders with positive balances as of July 18, 2024. The results meet the statutory requirements under Section 210(3AB) of the Singapore Companies Act 1967, but the plan still awaits formal approval from the Singapore High Court [1].

The restructuring proposal, spearheaded by WazirX's parent company Zettai Pte Ltd and facilitated through asset management firm Kroll Issuer Services, outlines a framework for asset distribution through Zanmai India, a subsidiary operating under India’s Financial Intelligence Unit. WazirX founder Nischal Shetty emphasized that the platform is prepared to resume trading and operations within 10 business days once the court gives the green light [1].

This marks the second round of voting on the restructuring plan, following the initial proposal’s rejection by the court in a prior round, despite also receiving majority support. Judicial authorities had raised concerns about the initial plan's equity and practicality, prompting WazirX to revise its proposal and seek reconsideration. The court granted an extended moratorium to allow for modifications, culminating in the latest vote [1].

The restructuring efforts come in the wake of a major security breach in July 2024, when the platform was allegedly hacked by the Lazarus Group, a North Korean-linked cybercriminal organization. The incident resulted in losses of over $230 million—nearly half of WazirX’s total $500 million in assets. Zettai Pte Ltd immediately sought creditor protection and obtained a four-month moratorium from the Singapore High Court in September 2024 to develop a comprehensive restructuring strategy [1].

Despite the encouraging vote outcome, many creditors remain skeptical about the timeline for fund recovery. WazirX has outlined two possible scenarios: one where the restructuring is approved, enabling systematic repayments, and another where rejection leads to prolonged uncertainty and potential liquidation. The company warned that delays may result in creditors missing out on market appreciation, as asset values could decline over time [1].

The platform had previously faced criticism in early 2025 for allegedly stalling repayments and exploiting legal complexities. Some users expressed frustration on social media, questioning the credibility of the recovery plan and highlighting the long-term uncertainty of receiving refunds until as late as 2030 [1]. The revised proposal aims to address these concerns, though the court's final decision remains the pivotal step for the plan’s implementation [1].

Source: [1] WazirX Restructuring Plan Wins 95% Creditor Approval, Awaits Court Ruling (https://cryptonews.com/news/wazirx-restructuring-plan-wins-95-creditor-approval-awaits-court-ruling/)