More than 90% of creditors of the Indian crypto exchange WazirX supported a restructuring plan following a significant hack. This could affect the process of returning lost funds.
Support of Creditors
93.1% of creditors, holding 94.6% of the total debt, voted in favor of the restructuring plan. All creditors with crypto balances on the platform had the opportunity to vote via the Kroll Issuer Services platform from March 19 to March 28.
Compensation Plan
According to the plan, WazirX intends to return 75-80% of users' balances at the time of the cyberattack through token distributions. The remainder will be covered by recovery tokens, which will be periodically repurchased based on platform revenues.
Consequences of the Hack
WazirX lost approximately $234.9 million due to a hack that was linked to North Korean state actors. To prevent future attacks, the exchange is moving to BitGo and Zodia for crypto custody.
The results of WazirX creditors' voting may positively impact the company's recovery and provide better protection for future users' funds.
