WazirX secures creditor majority for restructuring plan
WazirX, the Indian crypto exchange reeling from a major security breach, has taken a significant step toward recovery with broad creditor approval for its restructuring proposal.
Strong support for the scheme of arrangement
Between March 19 and March 28, a voting process was conducted for WazirX’s proposed scheme of arrangement, filed earlier in the Singapore High Court. According to parent company Zettai, a decisive 93.1% of eligible voting creditors, accounting for 94.6% in claim value, supported the plan.
- In total, 1,41,476 scheme creditors participated in the vote.
- These creditors represented $195.65 million in approved claims.
- Of them, 1,31,659 creditors—holding $184.99 million—voted in favor.
This result demonstrates a broad-based consensus, with Zettai noting that approval rates were consistent across all groups—from small individual investors to large institutional creditors.
- Approval rates remained between 92% and 95% across all claim sizes.
- This uniformity highlights a shared belief in Zettai’s recovery strategy.
Voting thresholds met with ease
For the court to consider the scheme valid, two key thresholds needed to be met:
- A simple majority (50%) of creditors by number.
- A supermajority (75%) by claim value.
Zettai confirmed both criteria were comfortably exceeded. Creditors were able to vote via a third-party platform, ensuring accessibility for global participants.
Next steps: court sanction and phased return
Following this approval, Zettai is expected to file the required application in the Singapore High Court to formalize the scheme. An official update with court filings will be shared with creditors soon.
- If approved, withdrawals and trading on WazirX will resume in phases.
- Creditors will receive an initial distribution of liquid assets within 10 business days of the scheme taking effect.
- Additionally, they will be allocated recovery tokens, which can later be redeemed as part of WazirX’s long-term recovery roadmap.
Recovery tied to future profitability
As previously stated by WazirX founder Nischal Shetty, once operations resume, platform profits will be shared with users, helping restore trust and offset prior losses.
- The company aims to generate revenue, then channel profits back to its user base.
- This aligns with the broader goal of long-term creditor compensation.
Background: fallout from the breach
WazirX’s troubles began after an alleged security breach in July 2024, which led to over $230 million in reported losses. Since then, the company has worked to regain control and rebuild trust.
- Current total claims against the firm stand at $546.5 million.
- The company currently holds $302 million in assets, as per internal estimates.
With creditor backing secured, WazirX moves a step closer to restoring operations and compensating affected users. The next milestone is court approval, which will determine how swiftly the phased recovery and asset redistribution can begin.
