WazirX Creditors Approve Restructuring Plan to Compensate $230M Hack Victims

Key Points to Know:

• WazirX crypto exchange received over 93% approval from creditors for its Scheme of Arrangement, advancing efforts to recover assets after a $230 million hack.

• The vote, which involved over 141,000 creditors, surpassed Singapore’s Companies Act requirements, preventing a move toward liquidation.

• If approved by the Singapore Court, the scheme will trigger payouts, resume withdrawals, and include plans for a decentralized exchange and recovery tokens.

Crypto exchange WazirX has secured over 93% approval from creditors for its proposed Scheme of Arrangement, moving victims of the $230 million July hack closer to partial asset recovery.

The voting process, held on the Kroll Issuer Services platform from March 19 to March 28, included more than 141,000 creditors representing $195.65 million in approved claims.

Out of the total, 131,659 creditors holding $184.99 million voted in favor, representing 93.1% by count and 94.6% by value. This exceeded the requirements of Singapore's Companies Act, under which a majority by count and 75% by value were needed for approval.

Had the scheme not been approved, the process would have shifted toward liquidation under Singapore's Companies Act, likely leading to lower asset recovery for creditors, with an estimated recovery date of 2030, according to WazirX in February.

With the voting results now finalized, Zettai plans to seek approval from the Singapore Court. If granted, the scheme will trigger an initial payout within 10 business days, followed by a phased resumption of withdrawals and trading, subject to regulatory compliance.

The refund plan includes launching a decentralized exchange (DEX), issuing recovery tokens that can be traded, and implementing a periodic buyback of recovery tokens using platform profits and new revenue streams.

WazirX users lost over $230 million in a hack led by the Lazarus Group in July 2024, which involved the interception of a private key. WazirX attributed the breach to its custody provider, Liminal, although Liminal rejected this claim, citing vulnerabilities on WazirX’s side. The hacker laundered the stolen funds through various addresses using Tornado Cash, which obscured the transactions and reduced hopes of a full recovery. Since then, WazirX has made limited progress in recovering the funds.