- 93.1% of WazirX creditors voted in favor of restructuring thus increasing approval ratings for the new re-vote.
- WazirX will use Zanmai India, an FIU-registered entity, and not shift to Panama.
- WazirX competitors have capitalized on its bankruptcy to penetrate the vast Indian crypto market.
WazirX, the Indian cryptocurrency exchange working to recover from a $235 million cyberattack, is moving forward with its revival plan after resolving its restructuring process in Singapore. The exchange has announced an upcoming revote that will clear the way for distributing funds to users, a concrete step toward restarting its operations.
The distribution process is set to begin in the coming weeks and will be handled by Zanmai India, an entity registered with India’s Financial Intelligence Unit (FIU).
A final vote will kickstart the fund distribution
The plan to restructure the exchange had already received 91% approval from creditors. A final revote is now needed simply to confirm a structural change in the plan.
“No shift to a Panama entity is needed since the Indian entity Zanmai will help in the distribution of funds. But since this change had to be made in the scheme, we need to get voting majority support again. We will announce the revote date soon,” Nischal Shetty, co-founder of WazirX noted.
Related: WazirX Gets a Second Chance as Court Allows a Revote on Its Restructuring Plan
Forensic Analysis on WazirX Hack and Restructuring Process
WazirX has planned to follow the path of Bitfinex, which has successfully recovered from its 2016 hack that resulted in the loss of nearly 120k Bitcoin.
Moreover, at the time, WazirX did not have the capacity to cover its losses in a similar manner as Bybit did after it lost nearly $1.5 billion in Ethereum to North Korea hackers.
But now, Court documents show WazirX has a 45% gap between its assets and liabilities, making a full restart of the exchange the most viable path for creditors to recover their funds over time. To build confidence, WazirX also plans to launch a Proof-of-Reserve (PoR) system after the restart.
Key challenges remain on the path to a full restart
The road to recovery though, is not without its hurdles. WazirX faces steep competition from other exchanges like Binance that have grown in India and obtained operating licenses. Additionally, the management team is navigating legal challenges, including a lawsuit from some creditors in Singapore.
“Our focus now is to complete the revoting process as quickly as possible so that WazirX can restart and users can regain access to funds. This is our top priority, and our bandwidth is limited,” Shetty highlighted.
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