WazirX Offers Creditors a Choice: Early Crypto Recovery or Wait Until 2030 for Full Refunds
WazirX, which was once India’s largest cryptocurrency exchange, is offering its creditors a crucial decision following the $230 million hack by the North Korean hacking group Lazarus in 2024. Creditors must vote on whether to accept a recovery plan that could begin payouts as early as April 2025 or choose to wait for a full refund, which may only come by 2030 under liquidation proceedings.
If the recovery plan gets approval from more than 75% of creditors, the exchange will reactivate its platform and begin issuing payouts, starting within 10 business days. This will include the distribution of available liquid assets and the creation of a decentralized exchange (DEX) to help recover further funds. A unique feature of the recovery plan involves the issuance of recovery tokens, which will be tradable and subject to periodic buybacks as WazirX earns new revenue.
However, should the creditors reject the plan, WazirX will proceed with liquidation under Singapore’s Companies Act. This would likely result in a lower payout for creditors as assets are sold off at potentially reduced prices, and delays would further reduce the value of the claims.
Since the hack, WazirX has been working to recover stolen funds but has faced both financial and reputational challenges. Despite criticisms regarding the handling of the incident, the company successfully secured approval from Singaporean courts for a restructuring plan to offer creditors a path to recovery, avoiding an outright liquidation for now.
This vote will ultimately determine the course of action for both the exchange and its creditors.
