In a significant development for the Indian cryptocurrency exchange WazirX, more than 90% of its creditors have voted in favor of a post-hack restructuring plan, marking a hopeful turning point for the platform following a severe security breach. According to an April 7 announcement, 93.1% of the voting creditors, controlling 94.6% of the value, supported the plan that allows for recovery efforts to commence.
The vote followed a period of uncertainty after WazirX suffered a $235 million hack in July 2024, attributed to North Korean state actors. The platform indicated that without the approval of this restructuring plan, repayments to creditors could be severely delayed, potentially until 2030.
Nischal Shetty, co-founder and CEO of WazirX, expressed his optimism after the results were announced, stating, “The people have spoken. We will work hard on rebuilding and creating value for everyone.” With the restructuring endorsed, Shetty emphasized that recovering stolen assets is now a primary focus.
WazirX’s creditors supported a plan that now aims to recover stolen assets. Source: WazirX
The Framework for Creditor Repayment
The restructuring plan, developed under the supervision of Singapore’s legal system, outlines that WazirX holds liquid assets of approximately $566.4 million USDT, compared to claims amounting to $546.5 million USDT. This adjustment is designed to enable creditors to recoup their losses effectively. WazirX is also issuing recovery tokens as part of the plan, allowing creditors to benefit from future operations and asset recoveries.
According to the terms, creditors will receive between 75% to 80% of their account balances lost during the cyberattack through token distributions. The remaining amounts will be compensated via recovery tokens, which WazirX plans to repurchase using profits generated from operational activities and the forthcoming launch of a decentralized exchange (DEX).
Shetty detailed that the proposed DEX will simplify user interaction and will allow customers greater control over their assets, aiming to significantly reduce the risk of future hacks. “The best thing is that you’ll be able to self-custody your assets here — your assets will be completely under your control — and you can freely trade or do what you want with your assets,” he stated.
Addressing Future Risks
In light of the July hack, WazirX has relocated its digital asset custody to BitGo and Zodia, reinforcing its security framework with enhanced protection mechanisms for customer funds, including insurance coverage. However, the cryptocurrency space remains besieged by hacks, with reports indicating that over $2 billion was lost to such incidents in the first quarter of 2025, primarily due to access control vulnerabilities.
The incident at WazirX serves as a critical reminder of the importance of maintaining robust security protocols within the cryptocurrency industry. The ongoing efforts by the exchange to address these risks reflect a commitment to regaining trust and restoring confidence among its users and stakeholders.
In summary, WazirX’s restructuring plan holds the promise of recovery and renewed growth. With the ample support from its creditors, the exchange is poised to build a more resilient operational framework while returning value to its users, thereby navigating through the aftermath of one of the most significant hacks in the history of cryptocurrency exchanges.
