The defunct Indian cryptocurrency exchange WazirX has left creditors with options for refunds. The firm has designed a repayment scheme, which is still subject to voting, stating that WazirX creditors can begin to receive their stolen crypto as early as April. If at least 75% of creditors do not support this proposal, these entities may have to wait till 2030 before getting their assets.
The crypto firm, which suffered a $235 million hack in July 2024, will kick off the voting process for the restructuring scheme in a few weeks. Once it secures 75% or more “Yes” in favor of the proposal, it becomes effective by April 2025.
The initial payouts are scheduled to commence within 10 business days after the scheme is activated. Notably, this includes the distribution of net liquid assets.
More “No” means that the WazirX restructuring plan has failed, and the process will automatically move towards liquidation under section 301 of the Singapore Companies Act. This potentially translates to a fire sale of assets, causing creditors to receive less compensation than the other option. During such fire sales, assets are sold off at possibly lower values.
WazirX noted that the process is usually less favorable for creditors due to delays and reduced asset value.
This restructuring plan, under consideration, has already received clearance from the Singapore High Court on January 23. However, the decision is not binding without the approval of creditors.
Should the restructuring plan fail, WazirX may resume its trading business.
Another part of the restructuring scheme is the firm’s plan to launch a Decentralized Exchange (DEX). WazirX also intends to issue tradable recovery tokens and perform a periodic buyback of recovery tokens utilizing the platform’s profits and other new revenue streams.
Meanwhile, the hacker transferred the stolen funds on September 2, about two months after perpetrating the act.
He moved 2,500 Ethereum (ETH), valued at about $6.3 million at the time, to popular crypto mixer Tornado Cash. The assets were transferred in 25 tranches of 100 ETH each directly to the crypto mixer.
At another time, he moved 5,000 ETH. According to the blockchain analytics platform Arkham Intelligence, the WazirX hacker’s wallet currently holds $4.65 million worth of ETH.
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