tl;dr
WazirX, an Indian crypto exchange, has received strong creditor support for its restructuring plan following a $235 million hack attributed to North Korean hackers. Over 93% of creditors, representing 94.6% of the claim value, voted in favor of the proposed Scheme of Arrangement. The plan, now headi...
WazirX secures crucial creditor approval for restructuring plan after $235 million hack
WazirX, an Indian crypto exchange, has received strong creditor support for its restructuring plan following a $235 million hack attributed to North Korean hackers. Over 93% of creditors, representing 94.6% of the claim value, voted in favor of the proposed Scheme of Arrangement. The plan, now heading for court sanction in Singapore, promises partial repayments, new protections, and a phased return to operations.
The approved plan ensures partial repayments in USDT and introduces "recovery tokens" tied to WazirX's profits and the launch of a new decentralized exchange. The vote results were independently verified and will be shared with all creditors for transparency. This marks a significant step in the recovery process following the 2024 hack, which led to a temporary halt in withdrawals and a criminal investigation.
In a statement shared with Decrypt on April 7, Zettai Pte. Ltd., the Singapore-based holding company behind WazirX, revealed that 131,659 creditors voted to support the proposed Scheme of Arrangement. That accounts for 93.1% by headcount and 94.6% by claim value among the 141,476 eligible voters.
The vote brings a degree of resolution to a crisis that began in July 2024, when hackers, later linked to North Korea’s Lazarus Group, compromised WazirX’s multi-signature wallets and made off with assets spanning over 200 tokens. The stolen crypto included Ethereum (ETH), Shiba Inu (SHIB), and Polygon (POL, at the time MATIC), some of which was traced through formerly-sanctioned coin mixer Tornado Cash as part of a laundering effort involving 15,000 ETH.
WazirX, meanwhile, has since shifted its crypto custody to BitGo and Zodia, introduced insurance coverage, and earmarked $12 million for legal costs and recovery.