WazirX creditors are set to vote on a proposed restructuring plan to address losses from a $235 million hack in July 2024. The vote will determine whether the exchange resumes trading or undergoes liquidation under Singapore’s Companies Act. If approved, the restructuring plan could see trading recommence by April 2025, with initial payouts starting within 10 business days.
WazirX Creditors To Vote On Restructuring Plan
According to a recent statement from the Indian cryptocurrency exchange WazirX, creditors will vote on a restructuring plan to recover losses from the WazirX hack. The proposed plan outlines a 52% immediate debt settlement, with the remaining 48% to be paid from future profits and asset recoveries.
The vote follows approval from the Singapore High Court, allowing WazirX creditors to decide the exchange’s future. If the plan is accepted by at least 75% of creditors, trading may resume by April 2025, and payouts will begin within 10 business days.
In addition, the development comes days after the Singapore High Court granted WazirX approval in late January to convene a Scheme meeting. This meeting will allow creditors to vote on the proposed recovery plan, facilitating a structured repayment of unstolen funds.
What Happens If Plan Fails?
If WazirX creditors reject the restructuring plan, the exchange will undergo liquidation under Singapore’s Companies Act. This could postpone repayments until 2030, significantly reducing the chances of full recovery for affected users.
Industry experts have warned that liquidation could lead to unpredictable asset distribution. The timeline for payouts would be extended, and the value of recoverable assets could decrease due to market volatility and operational challenges.
Source: X
Planned Recovery Measures And Future Operations
To facilitate debt repayments and restore operations, WazirX plans to launch a decentralized exchange (DEX) and introduce recovery tokens. The proposal also includes periodic buybacks to stabilize the platform and improve financial sustainability.
Moreover, the restructuring plan will allocate Net Liquid Platform Assets to creditors as part of the recovery process. The company has been working closely with the Committee of Creditors (CoC) to ensure faster distribution and prevent prolonged delays in fund recovery.
The vote will determine whether the Indian exchange can resume trading or enter a liquidation process. The restructuring plan is an alternative to liquidation. It offers creditors a more immediate path to fund recovery. With over 4.4 million creditors involved, the voting process is a crucial moment for the Indian exchange
Meanwhile, WazirX continues its efforts to recover stolen funds, freezing $3 million in assets as part of its recovery plan. Founder Nischal Shetty emphasized that this is just the beginning, reaffirming the platform’s commitment to retrieving lost crypto. The exchange is working with law enforcement to track stolen assets and ensure a smooth recovery process.
The post WazirX Creditors Weigh Restructuring Plan That Could Revive Trading: Details appeared first on CoinGape.
