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Arabian Post
a day ago
- Business
- Arabian Post
WazirX Offers Partial Repayment Amid Court‑Mandated Restructuring
WazirX has unveiled a revised restructuring plan under Singapore High Court oversight that proposes to repay approximately 85% of users' pre‑hack balances, while the remaining 15% would be settled over time through a Recovery Token mechanism. A final court decision is expected by 20 June, setting the stage for ensuing repayments. A hack that occurred on 18 July 2024 led to the theft of nearly US $235 million from the exchange's wallets, widely attributed to North Korean Lazarus Group operatives. WazirX parent company Zettai Pte Ltd subsequently secured a moratorium in Singapore and initiated a formal Scheme of Arrangement allowing creditors to vote on recovery proposals. By April, rebalancing of assets was completed, enabling the exchange to present each affected user's USD and INR valuations based on their 18 July 2024 holdings. Around 93% of creditors voted in favour of this plan in April, far exceeding the 75% threshold required by law. ADVERTISEMENT Under the scheme, the initial payment—estimated at 85% of the original holdings—would be disbursed in either the original asset or USDT within ten business days of court approval. The remaining 15% would be issued as RTs, tradable tokens redeemable via quarterly buybacks funded from WazirX's profits or recovered assets. Risks remain, however: if creditors reject the plan, the court may order liquidation under Section 301 of the Singapore Companies Act. That scenario could trigger asset fire‑sales, reducing recovery potential and extending the timeline until 2030. Community reaction is mixed. Many users have expressed doubts over the exchange's transparency and the partial compensation model. Subreddits suggest a collective legal response is forming in Kerala and beyond. One user asserted: 'If anyone still believes that WazirX will return our funds without us taking any action — that hope is gone after yesterday's court decision.' Meanwhile, creditor‑activist voices have argued the restructuring represents a better outcome than liquidation. As one FTX creditor remarked, it is 'far superior to liquidation' for preserving value. CoinSwitch has also launched a parallel initiative named CoinSwitch Cares, offering affected users a potential path to full recovery—up to ₹600 crore—with added incentives for sign‑ups and referrals. However, that scheme depends on WazirX restoring withdrawal functionality. The Singapore High Court's deadline of 20 June will determine whether the court grants final sanction to WazirX's Scheme of Arrangement. Should it proceed, initial disbursements would begin between late June and July. If it's rejected, WazirX would head into liquidation—triggering a protracted, uncertain payout stretching possibly until 2030, with potentially deep losses. WazirX's recovery architecture combines immediate restitution and long‑term tools designed to align creditor outcomes with the firm's future performance. The RT buyback mechanism underscores this approach, offering users potential upside linked to the exchange's profitability and asset recovery. Users must act to verify claims through WazirX's Claim Tracker, accept the rebalanced valuations, and monitor further updates. Approval hinges on the court's formal order and the willingness of creditors to embrace a controlled, phased repayment versus the uncertain prospects of full liquidation.
Yahoo
05-06-2025
- Business
- Yahoo
WazirX's Restructuring Plan Declined by Singapore Court, Hacked Indian Exchange Says
Embattled Indian crypto exchange WazirX's restructuring plan has hit a major snag, with the Singapore High Court declining to approve the crypto exchange's proposed scheme to repay creditors. The decision effectively delays any payouts that were expected to begin as early as April 2025. 'The Honourable Singapore High Court issued an order declining to approve our proposed restructuring plan,' WazirX said in an email to creditors. 'While this outcome was not what we anticipated, we respect the Court's decision and remain fully committed to complying with all legal and regulatory processes. Our primary focus remains to begin distributions as soon as possible,' it claimed. The court initially approved WazirX's plan in January after the exchange sought protection from liquidation in the wake of a devastating $230 million hack by North Korea's Lazarus Group. The scheme would have allowed creditors to vote on whether to accept the plan, with payouts promised within 10 business days of activation. That plan also included launching a decentralized exchange (DEX), issuing recovery tokens, and implementing periodic buybacks to support liquidity. But with the court's latest decision, the timeline for creditor repayment has again been thrown into uncertainty. If the restructuring ultimately fails, WazirX could face liquidation under section 301 of the Singapore Companies Act, which might result in fire-sale prices for remaining assets and lower compensation for creditors, as previously reported. WazirX has faced overwhelming criticism for its slow communication and limited success in asset recovery, and severely limiting the ability for users to interact with its social media accounts. The exchange once dominated crypto trading in India, but many are now left wondering if they will ever see their money again. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
