Overwhelming Creditor Support for Restructuring
Following a devastating $235 million exploit in July 2024, crypto exchange WazirX has secured vital support for its restructuring plan. Over 93% of creditors voted in favor of the proposal, which includes partial repayments and a roadmap for resuming operations.
According to Zettai Pte. Ltd., WazirX’s Singapore-based parent company, the plan now awaits court approval in Singapore. A total of 131,659 creditors backed the scheme, accounting for 93.1% by headcount and 94.6% by claim value.
Details of the Recovery Plan
The approved plan includes repayments of 75-80% of user claims in USDT, with the remainder distributed as “recovery tokens” tied to WazirX’s profits and the launch of a new decentralized exchange (DEX). Global consultancy Alvarez & Marsal verified the results.
Without approval, Zettai had warned users might not regain access to funds until 2030.
Background of the Hack and Fallout
The July 2024 hack, attributed to North Korea’s Lazarus Group, compromised multi-signature wallets, stealing over 200 tokens including ETH, SHIB, and POL. The exploit triggered police investigations and criticism over WazirX’s lack of transparency.
Since then, the company has overhauled its security, shifting custody to BitGo and Zodia, and allocating $12 million for legal and recovery efforts.
