After suffering a $234 million hack more than a year ago, WazirX users may be closer to recovering their funds, with 95% of creditors voting in favor of the new reorganization plan. Earlier this year, the plan was rejected by the Singapore High Court.
WazirX lost $234 million in cryptocurrency in mid-July 2024, an event that has been retrospectively attributed to North Korean hackers.
WazirX founder Nischal Shetty stated that if the Singapore High Court approves the latest reorganization proposal, the exchange will restart and begin compensating users within 10 days after the 'plan takes effect'.
Contrary to the estimate by George Gwee, a director of the restructuring company Kroll, during a citizens' meeting on July 30, who predicted that users would need to wait two to three months to receive their funds after court approval.
Reorganization plan voted again
According to WazirX, nearly 150,000 creditors voted between July 30 and August 6, representing over $206 million in lost funds.
Users approved a similar plan in April, but it failed to pass due to the High Court's concerns that recovery tokens used for compensating users would be affected by the regulatory framework for digital token service providers.
New company responsible for compensation
The reorganization proposal approved by creditors includes a new company responsible for user compensation. Under the modified plan, recovery tokens will still be repurchased through WazirX's net profits, but distributed by Zanmai India.
WazirX's parent company Zettai, after ceasing operations in Singapore, has established a subsidiary, Zensui Corporation, in Panama to transfer the platform's cryptocurrency-related services there.
Meanwhile, those who are skeptical have expressed concerns about delays, legal issues pointed out by the court, and the company's operational migration.
WazirX has not yet responded to requests for comment.
