WazirX Creditors Approve Restructuring Plan After Devastating Hack

In a significant step toward recovery following last year’s crippling hack, over 90% of WazirX creditors have voted in favour of the exchange’s proposed restructuring plan, surpassing the statutory requirements and setting the stage for court approval in Singapore.

The creditor vote, which ran from March 19 to March 28 via the Kroll Issuer Services platform, saw participation from more than 141,000 affected users holding approved claims worth $195.6 million. The overwhelming majority backed the plan by Zettai, the parent company of WazirX, signaling confidence in the exchange’s roadmap to restitution and revival.

In an official blog post, WazirX confirmed that the creditor approval rate stayed consistently high across the board — ranging between 92% and 95%, irrespective of the size of individual claims. The company noted that this level of support “significantly exceeds” the legal thresholds: a simple majority by headcount and at least 75% by claim value.

With the vote concluded, Zettai is preparing to present the proposal for court sanctioning in Singapore. If approved, initial fund distributions — estimated to be between 80% and 85% — will commence within 10 business days. Trading and withdrawals are expected to resume in stages.

The prominent Indian crypto exchange founded in 2018 by Nischal Shetty, Siddharth Menon, and Sameer Mhatre plans to launch a decentralized exchange as part of its long-term recovery strategy following a significant security breach in July 2024, in which over $230 million in digital assets were stolen by the Lazarus Group, a North Korean hacking organization. The U.S. State Department confirmed this group’s involvement in several high-profile attacks, including a $54 million hack of CoinEx in September 2023. Despite the setback, WazirX aims to enhance security and user autonomy with the upcoming decentralized exchange, building on its previous success, where it achieved a trading volume of over $43 billion in 2021, marking an impressive 1,735% growth of the prior year.

If you want to read more news articles like this, visit DeFi Planet and follow us on Twitter, LinkedIn, Facebook, Instagram, and CoinMarketCap Community.