WazirX Restructuring Approval Post-Cyberattack
In a significant development for WazirX, over 90% of its voting creditors have expressed their approval for a restructuring strategy following a devastating cyberattack. Announced on April 7, the proposal garnered support from 93.1% of these creditors, who collectively hold 94.6% of the overall value. This voting period spanned from March 19 to March 28 and was made accessible to all creditors with cryptocurrency balances on the platform through Kroll Issuer Services.
Nischal Shetty’s Commitment to Recovery
Nischal Shetty, co-founder and CEO of WazirX, underscored the importance of this approval in a conversation with Cointelegraph, emphasizing that recovering the stolen assets will be a top priority. He also highlighted the potential for profit-sharing arrangements as a means to further aid user compensation.
“The people have spoken. We will work hard on rebuilding and creating value for everyone.” – Nischal Shetty
This positive vote follows previous warnings from WazirX, issued in early February, indicating that creditors might face significant delays in receiving repayment from the $235 million stolen during the hack, possibly extending until 2030, unless the restructuring plan was ratified. The exchange had cautioned that without approval, creditors could face ambiguous and prolonged time frames.
Details of the Restructuring Plan
The approved plan is viewed as a pivotal milestone in the recovery journey, reflecting a consensus on the proposed measures for recovery. Developed under Singapore’s legal framework, the restructuring plan was announced in January and reveals that WazirX is holding liquid assets valued at $566.4 million against claims totaling $546.5 million USDT.
As part of the recovery process, WazirX announced the issuance of recovery tokens, enabling creditors to potentially benefit from the future profitability of the platform and asset recovery efforts. The platform aims to return between 75% to 80% of user account values affected during the cyberattack through token distributions, with the remainder being addressed through recovery tokens that will be gradually bought back using profits from operations and a planned decentralized exchange (DEX). In November 2024, Shetty mentioned that this DEX would provide users with full control over their assets, thereby enhancing security and allowing for unrestricted trading.
Lessons from the Cyberattack
In the wake of the hack—believed to be executed by North Korean cybercriminals in July 2024—WazirX suffered a loss of approximately $234.9 million in assets. Shetty noted that to fortify against such breaches in the future, WazirX has transitioned to utilizing BitGo and Zodia for cryptocurrency custody, enhancing the protection of user funds and including insurance measures.
The cryptocurrency sector continues to grapple with the threat of hacks, with over $2 billion reportedly lost to hacking incidents in early 2025 alone, largely due to vulnerabilities in access control mechanisms. According to Hacken, a key takeaway from the ongoing security challenges in the crypto landscape is the necessity for a robust infrastructure rather than relying solely on secure code, as even a single vulnerable point can jeopardize the entire system.
