WazirX pushes creditors to approve restructuring to prevent extended delays.
Emphasizing that rejecting its suggested restructuring plan could result in repayment delays until 2030, Indian bitcoin exchange WazirX has sent a harsh warning to creditors. Approved already by the Singaporean High Court, the proposal presents a road map for allocating money as early as April 2025.
WazirX recently said in a statement two possible outcomes for creditors affected by the $235 million attack on the platform. Should the restructuring plan go forward, the exchange intends to reopen its platform, create a new distributed exchange (DEX), and start payouts using profit-sharing and seized assets.
Reversal, though, might lead to much longer payback times. Before they get their assets, creditors will have to wait for continuous ownership issues to be settled. Worse, should liquidation take place before this conflict is resolved, money will be paid out in fiat money instead of cryptocurrency—probably at a reduced value depending on liquidation expenses.
WazirX also warned creditors that should they have to wait years for repayments, they may miss out on possible benefits from future market swings. The discussion underlined that a longer timescale would mean people miss the opportunity to get their money back in favorable market conditions.
Approval of Singapore Court and Future Action
Officially approving WazirX’s restructuring proposal on January 23, the High Court of Singapore chose an approach that gives faster fund distribution top priority above liquidation. Using recovery tokens, the exchange has suggested a mechanism wherein creditors might recoup around 80% of their shares. These tokens would be claims on WazirX’s assets, enabling users to profit from both future gains from the redesigned platform operations and the recovery of pilfers.
Currently, the company is proceeding with a creditor voting process scheduled to finish in the next months. If the majority votes in favor, the company will send net liquid assets to consumers ten days after official approval.
WazirX has reiterated its commitment to transparency throughout this process and has urged creditors to assist with restructuring to ensure prompt payouts. The choice could define the platform’s future and decide whether impacted users recover their assets fast or have to wait an indeterminate length of time.
