- WazirX creditors approve restructuring plan for victims of $230 million July 2024 hack
- Plan passed with >93 percent creditor support, meets Singapore legal requirements
- Recovery involves payouts, tradable tokens, buybacks; avoids liquidation risk
WazirX creditors approved the crypto exchange’s restructuring plan aimed at compensating victims of the July 2024 cyberattack that resulted in $230 million in lost assets. The exchange secured strong majority support for its Scheme of Arrangement, moving closer to potentially resuming operations and starting partial asset recovery.
Creditor Vote Details and Next Steps
Over 141,000 affected users participated in the vote held via the Kroll Issuer Services platform from March 19th to 28th. WazirX reported that 131,659 creditors (93.1 percent by number) representing 94.6 percent of claim value supported the proposal. The approved claims totaled $195.65 million.
This outcome satisfies Singapore’s Companies Act requirements (majority by count, >=75 percent by value). Zettai, WazirX’s Singapore-registered parent company, confirmed it will now seek formal sanction from the Singapore Court.
Related: WazirX Faces Make-or-Break Moment: Creditors To Decide Fate in Restructuring Vote
Proposed Recovery Strategy Outlined
If the court sanctions the plan, WazirX expects the first round of payouts to begin within ten business days. The exchange also plans a phased restoration of trading and withdrawal services, pending necessary regulatory approvals.
The recovery strategy includes issuing tradable recovery tokens to creditors, funded by periodic buybacks using future platform revenue. WazirX also intends to launch a decentralized exchange (DEX) as part of this strategy.
Related: WazirX Quietly Moves Funds from Bybit After $1.5 Billion Hack, Users Left in the Dark
Recap of the July 2024 Lazarus Group Breach
The July 2024 hack, attributed to the North Korea-linked Lazarus Group, involved a private key compromise resulting in the theft of over $230 million.
WazirX blamed failures by its custody partner, Liminal; Liminal denied responsibility, citing potential vulnerabilities in WazirX’s systems. The stolen funds were quickly laundered through Tornado Cash, making recovery extremely difficult.
Approval Averts Potential Liquidation Scenario
WazirX previously warned creditors that rejecting the recovery plan could force the company into liquidation.
Such a scenario would likely delay any potential payouts until at least 2030, with significant uncertainty about the return amounts. The strong creditor approval avoids this worst-case outcome for now.
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