Indian cryptocurrency exchange WazirX has announced that the users will be able to receive stolen crypto funds by April 2025 if they approve the restructuring and scheme.
WazirX has claimed that if the scheme is not approved, it will take several years, around 2030, to clear the dues.
“Two paths, two very different outcomes. Here’s a breakdown of what happens if the scheme is approved versus if it isn’t. Understand what to expect in both scenarios as we approach the voting process,” the company wrote on X.
What happened to WazirX?
In July 2024, WazirX faced a cyberattack leading to the theft of nearly $230 million in digital assets. The cryptocurrency platform has held North Korea-based Lazarus Group responsible for the theft.
In a joint statement, the United States, Japan, and South Korea also identified the Lazarus Group as responsible for the cyberattack.
WazirX scheme
The scheme comprises elements such as debt restructuring, token distribution, recovery token implementation, and platform reactivation.
The scheme provides an outline to reorganise the liabilities linked with WazirX to optimise returns for platform users. The reorganised liabilities will be distributed in tokens to scheme creditors within 10 business days of the effective scheme date.
It includes the issuance of recovery tokens (RTs) as well as distribution recoveries through RT purchase mechanisms.
What will happen if the scheme is approved?
WazirX said that if the creditors approve the restructuring plan and receive sanctions from the Singapore Court, the platform will continue with its operations and assets distribution will begin after the implementation of new business (DEX). The company aims to recover through profit sharing, recovery of illiquid wallets and stolen assets, and “white knight” collaborations if the plan is approved.
If the plan is not approved, the creditors will be required to wait till the ownership dispute resolved.
If the scheme is not approved
“If a liquidation occurs before the ownership dispute is resolved, the first asset distribution will be significantly delayed compared to a restructuring and will likely be in fiat,” the company wrote on X.
Wazir X also mentioned that the distribution will likely be materially lower due to liquidation costs and without improved profit-sharing recovery.
Singapore Court order
On January 23, 2025, the Singapore High Court allowed the company to form a scheme to distribute net liquid platform assets and resume operations. Additionally, the court gave a 16-week moratorium to Zettai Pte Ltd, the parent company of WazirX, for the necessary time and legal protection to carry out the restructuring process.
