WazirX Update: More Than 93% of Creditors Support $230M Hack Restructuring Proposal
Crypto exchange WazirX has received over 93% approval from creditors for its proposed Scheme of Arrangement, which brings victims of its $230 million hack in July closer to a partial asset recovery. The voting process, conducted on the Kroll Issuer Services platform from March 19 to March 28, involved more than 141,000 creditors representing $195.65 million in approved claims. Among them, 131,659 creditors, holding $184.99 million, voted in favor, resulting in 93.1% approval by count and 94.6% by value. This outcome surpassed the thresholds set by Singapore’s Companies Act, where the parent company, Zettai, is located, which requires a majority by count and 75% by value for approval.
Had the scheme been rejected, the process would have transitioned toward liquidation under Singapore’s Companies Act, likely leading to lower asset recovery for creditors, with an estimated recovery timeline extending to 2030, as indicated by WazirX in February. With the voting results finalized, Zettai intends to seek approval from the Singapore Court. If sanctioned, the scheme will initiate an initial payout within 10 business days, followed by a phased resumption of withdrawals and trading, contingent on regulatory compliance.
As part of the refund strategy, plans include launching a decentralized exchange (DEX), issuing recovery tokens that can be traded, and periodically buying back recovery tokens utilizing platform profits and new revenue streams. WazirX users lost over $230 million in a security breach led by the Lazarus Group in July 2024, which was attributed to an interception of private keys. This breach has been linked to the exchange’s custody provider, Liminal, which has disputed this claim, instead pointing to vulnerabilities within WazirX. The hacker obscured the transactions by laundering the stolen funds through various addresses using Tornado Cash, dampening hopes for a complete recovery, while WazirX has been working to retrieve the lost funds with limited success.
