Crypto exchange WazirX users are potentially one step closer to recovering funds more than a year after a $234 million hack of the exchange — with 95% of voting creditors greenlighting a new restructuring plan that had been shot down by the Singapore High Court earlier this year.
WazirX lost $234 million of crypto from a Safe Multisig wallet mid-July 2024 in an attack since attributed to North Korean hackers, forcing them to temporarily pause all crypto and Indian rupee withdrawals on the platform.
On Monday, WazirX founder Nischal Shetty said that if the Singapore High Court approves the latest restructuring proposal, the exchange would restart and begin compensating users within 10 days of “the scheme taking effect.”
The comment contrasts with a town hall on July 30, where George Gwee, a director at restructuring firm Kroll working with WazirX, estimated users would have to wait between two and three months after High Court approval before they might receive any funds back.
New vote forced after previous plan was shot down
Nearly 150,000 creditors cast a vote between July 30 and Aug. 6, representing over $206 million of the lost funds, according to WazirX.
Users approved a similar scheme in April; however, it fell by the wayside after the Singapore High Court didn’t approve it because of concerns about how the recovery tokens used to compensate users would be affected by the proposed regulatory framework for Digital Token Service Providers.
WazirX has said the recovery tokens represent the remaining claims not covered by the initial distribution and track a user’s outstanding balance. Holders are expected to periodically receive additional distributions through holding the tokens funded by WazirX profits and recovered assets.
Singapore’s central bank set a deadline of June 30 for local crypto service providers to stop offering digital token services to overseas markets.
New company will handle compensation
A significant change between the old proposal and the one just approved by creditors involved which company would compensate users.
Under the amended scheme, WazirX said the recovery tokens will still be repurchased using net profits from the exchange, but the distribution will be managed through Zanmai India, a reporting entity under the jurisdiction of India’s Financial Intelligence Unit.
WazirX parent company…
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