WazirX, the embattled Indian crypto exchange, faces a crucial vote on its restructuring plan. Creditors will choose whether to save the platform or trigger liquidation and prolonged repayment delays.
Two paths, two very different outcomes.
Here’s a breakdown of what happens if the Scheme is approved versus if it isn’t. Understand what to expect in both scenarios as we approach the voting process. pic.twitter.com/ZcXpC8g79Q
— WazirX: India Ka Bitcoin Exchange (@WazirXIndia) February 4, 2025
Restructuring Plan Approved
Following the $235 million hack in July 2024, WazirX declared bankruptcy and is now restructuring under the Singapore High Court, planning a 52% debt settlement. The remaining 48% will be paid out gradually from future profits and recoveries of the stolen assets, among other avenues.
WazirX’s recovery efforts got a lift when the Singapore High Court approved a request to hold a Scheme Meeting, allowing creditors to vote on a new restructuring plan. The exchange stated that the Scheme Meeting marks a significant step toward allocating Net Liquid Platform Assets and restarting operations.
“With over 4.4 million creditors, seeking individual approvals would have been a highly complex process, causing significant delays in distributions. To expedite recoveries, the Company has worked closely with the Committee of Creditors (CoC), which strongly supported the rebalancing plan as part of a viable Scheme proposal to allow distributions as soon as possible.”
This development offered hope during a challenging period for the Indian crypto community.
The next steps involve preparing for the voting process, which could pave the way for faster and fairer recoveries if approved. If the plan earns over 75% approval, trading might resume by April 2025, with payouts starting within 10 business days. The proposal includes launching a decentralized exchange, issuing recovery tokens, and periodic buybacks to stabilize operations.
WazirX’s Creditor Vote
While the DEX announcement received mixed feedback, creditors now have the chance to shape the exchange’s future, potentially avoiding liquidation. If the scheme fails, WazirX will undergo liquidation under Singapore’s Companies Act, postponing creditor repayments until 2030 and likely reducing recovery prospects.
Industry experts warn that this route could lead to significant losses, given the unpredictable timeline and uncertain asset distribution. Overall, market watchers view this as a test case for how exchanges manage cyber-attacks and complex creditor negotiations. WazirX’s fate now rests on its over 4.4 million creditors’ decision.
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