Creditors Approve Wazir’s Proposed Restructuring Plan

Hit by a $235 Mn heist last year, crypto exchange WazirX’s parent Zettai said that a majority of its creditors voted in favour of a proposed restructuring scheme to expedite the recovery of the stolen assets.

In a statement, the company said that over 93% of voting creditors, representing nearly 95% of the total claim value, voted in favour of the “scheme of arrangement”. The voters included all crypto creditors with balances on the WazirX platform. 

Of the 1.41 Lakh votes cast, 1.31 Lakh voted in favour of the scheme, amounting to $185 Mn out of $195.6 Mn in claims. Approval levels stayed consistent across all creditor groups, regardless of claim size, added the crypto platform.

An independent review of the voting was done by Alvarez & Marsal. The verified vote report will soon be shared with creditors, it added. 

Following this, Zettai will seek approval from the Singapore High Court to implement the scheme, which will pave the way for the platform to resume operations. If sanctioned, the company will begin claims distributions within 10 business days of the scheme taking legal effect. Trading and withdrawals will resume in phases to align with regulations.

The result follows the Singapore High Court, in January this year, allowing Zettai to convene a meeting with creditors to conduct a voting on the proposed scheme. The court also granted a 16-week moratorium to support the restructuring.

How WazirX Plans To Compensate Users

WazirX lost around $235 Mn in crypto assets during a hack last year. Thereafter, WazirX kicked off steps to undertake a restructuring exercise and revive its operations.

As part of the proposed recovery plan, Zettai plans to release $284 Mn in liquid assets while also issuing recovery tokens to users. Further, the company is looking to resume withdrawals and trading in phases.

The company has also completed the rebalancing of net liquid assets on the platform, a critical step that sets the stage for asset recovery. Once the scheme receives final sanction from the court, WazirX plans to resume trading within 10 days. 

Earlier, the exchange said that 85% of users’ crypto reserves will be returned based on rebalanced prices. If all goes as planned, victims of the hack could begin receiving their recovered crypto assets as early as April 2025.

However, if the scheme is rejected by the court, the company will move towards liquidation under Singapore law. In that case, users may have to wait until 2030 to see any compensation.