WazirX Creditors Face Payout Choice: Early Recovery or Long Wait Until 2030
The fallout from the devastating hack of India’s former leading crypto exchange, WazirX, continues to unfold, with creditors now facing a crucial decision regarding fund recovery.
WazirX has proposed a restructuring plan that could see affected users start receiving their stolen crypto as early as April 2025—provided they approve the scheme in an upcoming vote. However, if the plan is rejected, creditors may have to wait until 2030 for potential refunds.
The vote, scheduled in the coming weeks, requires at least 75% approval by value from creditors. If passed, the restructuring plan—previously sanctioned by a Singapore court—will take effect in April 2025. According to WazirX’s latest update on X, trading operations would resume shortly after, with initial payouts distributed within 10 business days. This would include the disbursement of available liquid assets.
As part of the recovery framework, WazirX plans to:
- Launch a decentralized exchange (DEX)
- Issue recovery tokens tradable on the platform
- Conduct periodic buybacks of these tokens using platform-generated profits
If creditors reject the proposal, the exchange will move toward liquidation under Singapore’s Section 301 of the Companies Act. This could lead to a distressed sale of assets, possibly yielding lower returns for creditors due to market conditions and prolonged delays.
Once India’s top crypto trading platform, WazirX suffered a crippling attack in July 2024, when the North Korean hacker group Lazarus stole over $230 million in user funds. The stolen assets were subsequently laundered through Tornado Cash, making full recovery efforts more challenging.
Despite ongoing efforts, WazirX has struggled to reclaim the lost funds and has faced sharp criticism over its handling of the situation, particularly regarding transparency and user communication. To avoid outright liquidation, the exchange secured court approval in January 2025 for a restructuring plan aimed at compensating creditors.
The upcoming vote will ultimately decide whether affected users regain access to their funds sooner or endure years of uncertainty.
