WazirX has unveiled a revised restructuring plan under Singapore High Court oversight that proposes to repay approximately 85% of users’ pre‑hack balances, while the remaining 15% would be settled over time through a Recovery Token mechanism. A final court decision is expected by 20 June, setting the stage for ensuing repayments.
A hack that occurred on 18 July 2024 led to the theft of nearly US $235 million from the exchange’s wallets, widely attributed to North Korean Lazarus Group operatives. WazirX parent company Zettai Pte Ltd subsequently secured a moratorium in Singapore and initiated a formal Scheme of Arrangement allowing creditors to vote on recovery proposals.
By April, rebalancing of assets was completed, enabling the exchange to present each affected user’s USD and INR valuations based on their 18 July 2024 holdings. Around 93% of creditors voted in favour of this plan in April, far exceeding the 75% threshold required by law.
Under the scheme, the initial payment—estimated at 85% of the original holdings—would be disbursed in either the original asset or USDT within ten business days of court approval. The remaining 15% would be issued as RTs, tradable tokens redeemable via quarterly buybacks funded from WazirX’s profits or recovered assets.
Risks remain, however: if creditors reject the plan, the court may order liquidation under Section 301 of the Singapore Companies Act. That scenario could trigger asset fire‑sales, reducing recovery potential and extending the timeline until 2030.
Community reaction is mixed. Many users have expressed doubts over the exchange’s transparency and the partial compensation model. Subreddits suggest a collective legal response is forming in Kerala and beyond. One user asserted:
“If anyone still believes that WazirX will return our funds without us taking any action — that hope is gone after yesterday’s court decision.”
Meanwhile, creditor‑activist voices have argued the restructuring represents a better outcome than liquidation. As one FTX creditor remarked, it is “far superior to liquidation” for preserving value.
CoinSwitch has also launched a parallel initiative named CoinSwitch Cares, offering affected users a potential path to full recovery—up to ₹600 crore—with added incentives for sign‑ups and referrals. However, that scheme depends on WazirX restoring withdrawal functionality.
The Singapore High Court’s deadline of 20 June will determine whether the court grants final sanction to WazirX’s Scheme of Arrangement. Should it proceed, initial disbursements would begin between late June and July. If it’s rejected, WazirX would head into liquidation—triggering a protracted, uncertain payout stretching possibly until 2030, with potentially deep losses.
WazirX’s recovery architecture combines immediate restitution and long‑term tools designed to align creditor outcomes with the firm’s future performance. The RT buyback mechanism underscores this approach, offering users potential upside linked to the exchange’s profitability and asset recovery.
Users must act to verify claims through WazirX’s Claim Tracker, accept the rebalanced valuations, and monitor further updates. Approval hinges on the court’s formal order and the willingness of creditors to embrace a controlled, phased repayment versus the uncertain prospects of full liquidation.
Arabian Post – Crypto News Network
