- WazirX creditors will vote on a plan to recover losses from a $235 million hack and decide the exchange’s future.
- If approved, trading may resume by April 2025 and creditors could receive initial payouts within 10 business days.
- The vote outcome will impact over 4.4 million creditors and decide if WazirX restructures or undergoes liquidation.
WazirX creditors will soon vote on a restructuring plan following a $235 million hack in July 2024. The decision will determine whether the exchange resumes trading or undergoes liquidation under Singapore’s Companies Act. If approved, trading could start by April 2025, with initial payouts beginning within 10 business days.
The restructuring plan outlines a 52% immediate debt settlement. The remaining 48% will be covered through future profits and asset recoveries. The proposal aims to provide creditors with a structured repayment process instead of immediate liquidation.
To support the recovery, WazirX plans to launch a decentralized exchange (DEX) and introduce recovery tokens. These steps aim to restore financial stability and improve liquidity. The exchange has also frozen $3 million in assets as part of its ongoing recovery efforts.
Court Approval and Voting Process
The Singapore High Court recently granted approval for WazirX to proceed with a Scheme meeting. The meeting enables creditors to vote on the proposed restructuring plan. Operations can restart after receiving 75% approval from the creditor group. The exchange expects to distribute initial payouts shortly after approval.
The Committee of Creditors (CoC) has been actively involved in the planning process. The company is working closely with them to ensure timely fund distribution. Additionally, Net Liquid Platform Assets will be allocated to creditors as part of the recovery plan.
With over 4.4 million creditors, the voting outcome is crucial. If rejected, the exchange may face liquidation, further delaying fund recovery. WazirX believes the proposed plan offers the best path toward compensating affected users.
Impact on the Crypto Industry
The upcoming vote will have a significant impact on WazirX and the broader cryptocurrency market. A successful restructuring could restore confidence in the exchange. However, liquidation could lead to market instability and prolonged financial losses for creditors.
WazirX continues collaborating with law enforcement to track stolen assets. The exchange has emphasized its commitment to recovering lost funds and stabilizing its platform. The upcoming vote will determine the company’s future and its ability to compensate affected users.
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