WazirX creditors approve post-hack restructuring; repayments soon

After months of discussion and planning, over 90% of WazirX’s voting creditors have approved the crypto exchange’s post-hack restructuring plan. Zettai Pte Ltd, the parent company of WazirX, stated that 141,476 creditors representing $195,650,529.03 in approved claims participated. Of these, 131,659 creditors representing $184,997,156.31 voted ‘for’ the scheme, amounting to 93.1% by count and 94.6% by value.

"Zettai Pte Ltd. is pleased to announce that its proposed Scheme of Arrangement has received overwhelming support from creditors," the company said, adding all creditors with crypto balances on WazirX were eligible to vote.

Voting occurred on the Kroll Issuer Services platform from March 19 to March 28. Following this outcome, users will soon receive distributions, with withdrawals and trading resuming in phases. "Subject to the Court’s sanction and the effectiveness of the Scheme, within 10 business days of the scheme becoming legally effective, the first distribution will begin. The resumption of withdrawals and trading will happen in phases, ensuring regulatory compliance and user accessibility."

WazirX's creditors had earlier stated that users will be able to receive stolen crypto funds as early as April 2025, provided they approve the restructuring and scheme. The company had said that if the scheme were not approved, it could take years (with a tentative deadline of 2030) due to unclear and extended timelines.

WazirX suffered a massive cyberattack in July 2024, resulting in the theft of around $230 million in digital assets. Hackers exploited vulnerabilities in the multisig wallet, leading to the suspension of its operations and the halting of trading and withdrawals in the same month.

The vote significantly surpassed the statutory threshold under Section 210(3AB) of Singapore’s Companies Act, which requires a majority by count and at least 75% by value approval from voting creditors.

Approval rates consistently ranged between 92% and 95% across creditor segments, regardless of claim size. "This uniform backing across Zettai's diverse creditor base confirms broad alignment with the proposed restructuring," the company noted.

Nischal Shetty, Founder of WazirX, said: "This consistent support across our entire base demonstrates belief in our restructuring approach and recovery plan."

Votes were independently verified by Alvarez & Marsal’s Joshua Taylor and Henry Anthony Chambers. Their verification report will be available to creditors, along with instructions on accessing the updated creditors list.

Next, Zettai will seek the Singapore Court’s sanction, filing an application soon. "Once the filing is accepted by the Singapore Court, Zettai will issue an update to all Scheme Creditors with a copy of the legal filings."

On January 23, 2025, the Singapore High Court granted the company leave to convene a scheme meeting to distribute net liquid platform assets and resume operations. The court also granted a 16-week moratorium to Zettai, which provides the necessary time and legal protection to carry out the restructuring process.