WazirX Warns of Possible Repayment Delays Until 2030

February 4, 2025 BACK TO NEWS

WazirX warns of repayment delays after $235M hack, urging creditors to approve restructuring plan - IcoHolder.

Indian cryptocurrency exchange WazirX has issued a warning to creditors regarding potential delays in repayment following a massive $235 million hack. The company stated that if its proposed restructuring plan is not approved, affected users may face delays in receiving their assets until 2030.

On February 4, WazirX shared an image detailing two possible outcomes for creditors. If the restructuring plan is approved by creditors, the company said it could begin the process by April 2025. This plan includes the relaunch of the platform and the distribution of the first round of repayments. Additionally, WazirX plans to introduce a new decentralized exchange business and repay creditors through profit-sharing, as well as by recovering stolen assets.

However, if creditors reject the plan, WazirX warned that repayment could be delayed for several years. In the worst-case scenario, it could take until 2030 for creditors to see any returns on their lost assets. The company explained that rejecting the restructuring scheme would lead to an unclear and extended repayment timeline, as ownership disputes must be settled before any assets can be distributed.

WazirX also cautioned that if liquidation occurs before the ownership dispute is resolved, repayment could be further delayed, and the assets might be devalued due to liquidation costs. The company noted that creditors might miss out on potential market gains if the repayment process stretches over an extended period.

The warning comes after the High Court of Singapore approved WazirX's restructuring plan on January 23. The court favored restructuring over liquidation, believing that swift distributions would be the best outcome for creditors. Under the plan, the company estimates that users could recover up to 80% of their balances.

As part of the restructuring, WazirX intends to issue recovery tokens, which will represent claims on recovered assets and future platform profits. A voting process will take place over the next three months, and if a majority of creditors approve the plan, net liquid assets will be distributed to users within 10 days.

WazirX did not respond to Cointelegraph's request for comment by publication time, but the company has made it clear that the outcome of the restructuring vote will significantly impact the timing and amount of repayments to affected creditors.