WazirX, one of India’s leading cryptocurrency exchanges, is making significant strides toward recovery following the devastating cyberattack in July 2024 that resulted in the loss of nearly $235 million in user assets. The platform’s parent company, Zettai Pte Ltd, has devised a comprehensive creditor-first restructuring plan, aiming to fairly and efficiently return funds to affected users while preparing to restart operations under enhanced security and regulatory compliance.
Key Highlights of WazirX’s Restructuring and Recovery Plan:
Creditor Approval and Court Oversight: The proposed Scheme of Arrangement was overwhelmingly supported, with more than 93% of creditors voting in favor in March 2025. The plan awaits final sanction from the Singapore High Court, which oversees the restructuring process to ensure transparency and fairness.
Rebalancing of Assets: WazirX implemented a Rebalancing Calculator allowing creditors to understand how their Net Liquid Platform Assets will be proportionally distributed. This meticulous rebalancing process ensures equitable allocation of funds across all affected users.
Initial Payout of 85%: Upon court approval, users are set to receive approximately 85% of their portfolio value as it stood prior to the hack. This distribution, expected to occur within ten business days after the scheme becomes effective, will be primarily in crypto tokens or USDT for illiquid assets.
Recovery Tokens for Remaining 15%: The balance 15% will be disbursed over the next two to three years through tradable Recovery Tokens (RTs). These tokens represent claims on future profits and asset recoveries, including proceeds from stolen asset recovery efforts and profits generated through the platform’s planned reactivation and decentralized exchange (DEX) launch.
Enhanced Security Measures: In partnership with institutional-grade custody providers like BitGo and Zodia, WazirX has significantly upgraded its asset protection infrastructure. These partnerships aim to safeguard user assets and prevent future security breaches.
Phased Resumption of Trading and Withdrawals: WazirX intends to restart trading and withdrawals gradually following regulatory guidelines, prioritizing user accessibility and system stability. This phased approach helps rebuild user confidence while complying with compliance requirements.
Ongoing Recovery Efforts: The platform continues robust legal and forensic investigations to recover stolen funds, which, if successful, could increase creditor compensation over time.
Understanding the Rationale Behind the Restructuring:
The Scheme of Arrangement under Singapore’s Insolvency, Restructuring, and Dissolution Act 2018 offers a legally binding mechanism for debt restructuring that balances creditor interests with operational viability. This approach is designed to provide a faster and more transparent route for users to regain access to their funds compared to a liquidation process, which could take years with uncertain recoveries and higher costs.
The restructuring plan also offers users the potential upside of participating in the platform’s future growth through the Recovery Tokens, converting what might otherwise be a total loss into an opportunity tied to WazirX's revival.
Implications and User Guidance:
Affected users should confirm their claims through WazirX’s Claim Tracker tools and participate in upcoming votes and communications to stay informed about the restructuring’s progress. While the initial 85% payout provides substantial recovery, users need to understand that the remaining 15% is subject to operational success and market conditions.
Risks include potential delays in the final court sanction, fluctuations in token valuations, and the uncertainty surrounding the full extent of stolen asset recoveries. Nevertheless, the restructuring represents the most promising path forward for WazirX users seeking restitution.
Looking Ahead:
With court approval pending following recent legal hearings, the success of the restructuring vote and WazirX’s execution of its recovery plan are pivotal. If successful, this will mark a historic comeback for one of India’s largest crypto exchanges, restoring user trust and stabilizing the platform.
WazirX’s commitment to transparency, creditor-friendly policies, and enhanced security demonstrates a pragmatic and progressive approach to crisis management in the rapidly evolving crypto industry.
Source: WazirX Official Blog, Moneycontrol, CoinDesk, Singapore High Court filings (August 12, 2025)
