WazirX Users Approve New Restructuring Plan Following Court Rejection

95% of Creditors Support Amended Recovery Proposal

Cryptocurrency exchange WazirX has received overwhelming support from its users for a revised restructuring plan, with 95% of voting creditors approving the proposal. This development comes more than a year after the exchange suffered a devastating $234 million hack that forced the platform to halt all withdrawals.

The positive vote represents a crucial step forward for approximately 150,000 affected users who have been waiting to recover their funds since the July 2024 security breach.

Exchange Promises Quick Recovery Timeline

WazirX founder Nischal Shetty announced that if the Singapore High Court approves the latest restructuring proposal, the exchange will restart operations and begin compensating users within 10 days of the scheme taking effect. This timeline represents a significant improvement from earlier estimates that suggested users might wait two to three months after court approval.

Background of the $234 Million Security Breach

The WazirX hack occurred in mid-July 2024 when attackers, later attributed to North Korean hackers, compromised a Safe Multisig wallet and stole $234 million worth of cryptocurrency. The attack forced the exchange to temporarily suspend all crypto and Indian rupee withdrawals, leaving thousands of users unable to access their funds.

Previous Restructuring Plan Rejected by Singapore Court

This marks the second attempt at implementing a recovery plan. Users had previously approved a similar scheme in April 2025, but the Singapore High Court rejected it due to regulatory concerns. The court expressed worries about how the proposed recovery tokens would be affected by Singapore's new regulatory framework for digital token service providers.

The rejection forced WazirX to revise its approach and hold a new vote between July 30 and August 6, 2025.

Key Changes in the Amended Restructuring Plan

New Corporate Structure for Compensation

A significant modification in the revised plan involves changing which entity will handle user compensation. Under the amended scheme, recovery tokens will still be repurchased using net profits from the exchange, but distribution will now be managed through Zanmai India, a reporting entity under India's Financial Intelligence Unit jurisdiction.

Operational Changes Following Court Ruling

After the High Court's rejection, WazirX's parent company Zettai took steps to restructure its operations. The company incorporated a subsidiary, Zensui Corporation, in Panama and transferred the platform's cryptocurrency-related services there, moving away from its Singapore base.

Recovery Token System Explained

The recovery tokens represent users' remaining claims not covered by initial distributions. Token holders are expected to receive periodic additional distributions funded by WazirX profits and recovered assets. This system aims to provide ongoing compensation as the exchange rebuilds its operations.

User Sentiment Divided on Recovery Plan

Support for Quick Resolution

Many users expressed support for the restructuring plan, viewing it as the fastest path to recovering at least portion of their lost funds. Supporters indicated they wanted closure and saw the plan as offering hope for eventual recovery.

Concerns About Delays and Regulatory Issues

Some users remained skeptical about the proposal, citing concerns over potential delays, regulatory complications raised by the High Court, and the transfer of company operations. Others worried that holders of unhacked cryptocurrencies would lose value due to significant price increases since the security breach.

Alternative Legal Actions Explored

Some affected users are pursuing legal action against WazirX. However, efforts have faced challenges, including an April 2025 Supreme Court of India judgment that dismissed a petition filed by 54 hack victims, stating the court lacked authority to rule on cryptocurrency policy matters.

Timeline for Implementation

WazirX has warned that without creditor approval of the restructuring plan, repayments could be delayed until 2030 due to the lengthy process of liquidating the exchange's assets. The approved plan offers a significantly faster timeline, with compensation potentially beginning within days of court approval.

Impact on India's Cryptocurrency Market

The WazirX incident has highlighted the importance of security measures and regulatory frameworks in India's growing cryptocurrency market. The resolution of this case could set precedents for how similar incidents are handled in the future.

Regulatory Compliance Considerations

Singapore's central bank had set a June 30 deadline for local crypto service providers to stop offering digital token services to overseas markets. This regulatory pressure contributed to the court's initial rejection and influenced WazirX's decision to restructure its operations.

Next Steps for Affected Users

With creditor approval secured, the focus now shifts to obtaining Singapore High Court approval for the amended restructuring plan. Users await the court's decision, which will determine whether the promised 10-day compensation timeline can be achieved.

The overwhelming support for the restructuring plan demonstrates users' desire for resolution and their confidence in the revised approach to fund recovery and exchange operations.

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