The defunct Indian cryptocurrency exchange WazirX offers creditors refund options following a major hack in 2024. The company has designed a repayment scheme that requires creditors' voting.
WazirX Creditors May Suffer Huge Losses
The crypto company WazirX, 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 approval, it will be effective by April 2025. Initial payouts are scheduled to begin within 10 business days after the scheme activates, including distribution of net liquid assets. More 'No' votes mean the WazirX restructuring plan fails, leading to liquidation under section 301 of the Singapore Companies Act. This could result in a less favorable fire sale of assets, causing creditors to receive less compensation.
What Next For WazirX?
The restructuring plan has already received clearance from the Singapore High Court on January 23. However, it requires creditors' approval to take effect. If the plan fails, WazirX might resume its trading business. Another part of the restructuring plan includes launching a Decentralized Exchange and issuing tradable recovery tokens with periodic buybacks.
WazirX Hacker Uses Tornado Cash to Launder Funds
Meanwhile, the hacker transferred the stolen funds on September 2, about two months after the hack. He moved 2,500 Ethereum, valued at about $6.3 million, to crypto mixer Tornado Cash. The assets were transferred in 25 tranches of 100 ETH each. Another transaction involved moving 5,000 ETH. According to blockchain analytics platform Arkham Intelligence, the WazirX hacker's wallet currently holds $4.65 million worth of ETH.
WazirX aims to provide creditors with a resolution to their financial predicament, offering two main alternatives for fund recovery. It's essential for creditors to timely assess the risks of each option to minimize potential losses.
