WazirX, a crypto exchange based in India, has urged creditors to approve its restructuring plan, warning that repayments from a past $235 million hack could be delayed until 2030 if the plan is rejected.
In a February 4 post on X, WazirX shared a breakdown of two possible outcomes for affected creditors.
If the plan proceeds, the company expects to start payouts as early as April 2025. This would involve relaunching the platform, introducing a new decentralized exchange (DEX), and distributing the first round of repayments through a mix of profit-sharing and asset recovery.
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However, if creditors do not approve the plan, WazirX warns that repayment timelines could stretch for up to five more years. The exchange points out that creditors will have to wait for an ongoing ownership dispute to be resolved before any funds can be returned.
Another major risk is liquidation. If this happens before the ownership dispute is settled, repayments would be delayed further and made in fiat currency instead of crypto.
The exchange also noted that liquidation costs would reduce the overall payout, meaning creditors might receive less than expected. Additionally, since fiat distributions do not increase in value, creditors could miss out on any future market gains.
Meanwhile, CoinSwitch, a crypto trading platform in India, recently launched a $69.9 million fund to support victims of the 2024 WazirX security breach. What did the company say? Read the full story.
