WazirX Creditors Can Start to Receive Their Stolen Crypto as Early as April, or in 2030

Creditors of the hacked Indian crypto exchange will have to vote on whether to approve the restructuring scheme. If the majority, or more than 75% by value of voting creditors, vote yes, the scheme becomes effective in April 2025

Creditors of the hacked Indian crypto exchange WazirX could start receiving their stolen crypto as early as April, or in 2030, depending on the outcome of a voting scheme, the company said in an X post on Monday.

The creditors will have to vote on whether to approve the restructuring scheme, and if the majority, or more than 75% by value of voting creditors, vote yes, the scheme will become effective in April 2025, as previously approved by a Singapore court.

Following the approval of the scheme, the crypto exchange platform will restart trading operations, and the initial payouts to creditors will be made within 10 business days after the scheme's activation, including the distribution of net liquid assets.

The refund plan also includes launching a decentralized exchange (DEX), issuing recovery tokens that can be traded, and performing a periodic buyback of recovery tokens using platform profits and new revenue streams over seven years, to fully refund the creditors.

However, if the scheme is not approved, the restructuring plan will fail and the process will move towards liquidation under section 301 of the Singapore Companies Act, potentially leading to a fire sale of assets and creditors receiving less compensation as assets are sold off at lower values.

"This process may be less favorable for creditors due to delays and reduced asset value," noted WazirX in its post.

WazirX, once India’s largest crypto exchange by trading volumes, was hacked by North Korean hacker outfit Lazarus in July 2024 and saw over $230 million of user funds stolen from the platform.

The hackers laundered all the stolen funds to various addresses using Tornado Cash to obscure the transactions, as CoinDesk reported in September, further dampening hopes of a full recovery.

WazirX, still reeling from the financial and reputational damage, has worked to recover the funds with limited success. It has faced criticism for its handling of the crisis, especially concerning user communication and fund recovery processes.

It filed for a moratorium in Singapore courts and received court approval for a restructuring plan in January for creditor recovery, avoiding total liquidation.