The future of WazirX, one of India’s leading cryptocurrency exchanges, is at stake as creditors prepare to vote on a crucial restructuring plan. This decision comes after the $235 million hack in July 2024, which left millions of investors in limbo.
Founder Nischal Shetty has stepped in, leading efforts to recover stolen funds and restart trading by April 2025. The Singapore High Court has approved the vote, allowing creditors to decide between restructuring or liquidation under Singapore’s Companies Act, which could delay payouts until 2030.
Nischal Shetty’s Plan: Can WazirX Be Revived?
According to a WazirX statement, creditors will soon vote on whether to revive operations through a structured repayment plan or proceed with liquidation.
- The restructuring plan, backed by Nischal Shetty, proposes an immediate 52% debt settlement, with the remaining 48% to be paid from future profits and asset recoveries.
- If at least 75% of creditors approve, trading could resume by April 2025, with initial payouts starting within 10 business days.
- The proposal follows the Singapore High Court’s approval for WazirX to hold a Scheme meeting where creditors will cast their votes.
What Happens If Creditors Reject the Plan?
If the restructuring plan is rejected, WazirX will enter liquidation, significantly delaying fund recovery:
- Payouts could be postponed until 2030, impacting over 4.4 million creditors.
- Asset distribution may become unpredictable, affected by market volatility.
- Creditors may receive reduced compensation due to the declining value of crypto assets over time.
Industry experts warn that liquidation could make full recovery nearly impossible, making restructuring the best option for investors.
Planned Recovery Measures & Future Operations
To stabilize operations and compensate affected users, WazirX has outlined several recovery initiatives:
✅ Decentralized Exchange (DEX) Launch – Enhances liquidity and revenue generation.
✅ Introduction of Recovery Tokens – Provides faster compensation for creditors.
✅ Periodic Buybacks – Helps maintain price stability.
✅ Net Liquid Platform Assets Allocation – Allows creditors to reclaim part of their lost funds.
In addition, WazirX has frozen $3 million in stolen assets, with Nischal Shetty emphasizing that this is just the beginning. The exchange is working closely with law enforcement agencies to track missing funds and ensure a smooth recovery process.
Will WazirX Survive the Crisis?
The upcoming creditor vote will decide WazirX’s fate. If approved, trading could resume within months, marking a major comeback for the exchange. However, if rejected, a long liquidation process could leave many investors without compensation for years.
With millions of dollars at stake, the future of WazirX and its users now depends on the creditors’ decision.
