WazirX Announces Crypto Recovery Plan: Stolen Funds Could Be Returned by April 2025 if Scheme Approved
Cryptocurrency exchange WazirX has proposed a recovery scheme to return stolen funds to users by April 2025 if approved. Otherwise, it could take until 2030 due to legal delays.
Indian cryptocurrency exchange WazirX has announced that users may recover their stolen crypto funds by April 2025 if the proposed restructuring and recovery scheme is approved. However, the company warned that rejecting the plan could delay repayments significantly, potentially extending the timeline to 2030. The announcement comes after WazirX faced a devastating cyberattack in July 2024, resulting in the theft of nearly $230 million in digital assets. The platform has attributed the attack to the North Korea-based Lazarus Group, a claim supported by joint statements from the United States, Japan, and South Korea.
In a post on X (formerly Twitter), WazirX outlined two potential outcomes for creditors: one where the scheme is approved and another where it is rejected. “Two paths, two very different outcomes. Here’s a breakdown of what happens if the scheme is approved versus if it isn’t,” the company stated. The scheme includes elements such as debt restructuring, token distribution, implementation of recovery tokens (RTs), and reactivation of the platform. Under the plan, liabilities will be reorganized and distributed to creditors in the form of tokens within 10 business days of the effective scheme date. The company aims to recover funds through profit-sharing mechanisms, recovery of illiquid wallets, stolen assets, and collaborations with external partners referred to as "white knight" initiatives.
If the restructuring plan is approved and receives sanctions from the Singapore Court, WazirX plans to resume operations and begin distributing assets after implementing its new decentralized exchange (DEX). The company emphasized that this approach would optimize returns for users and provide a structured path to recovery. On the other hand, if the plan is rejected, creditors face significant delays. WazirX stated that liquidation before resolving ownership disputes would result in materially lower payouts due to associated costs and inefficiencies. Additionally, distributions would likely occur in fiat currency rather than cryptocurrencies, further complicating the process for affected users.
The Singapore High Court recently granted WazirX’s parent company, Zettai Pte Ltd, a 16-week moratorium under the insolvency act. This legal protection allows the company time to formulate and execute its restructuring plan. The court also authorized the formation of a scheme to distribute net liquid assets and resume platform operations. Despite these developments, the ownership dispute remains unresolved, adding another layer of complexity to the recovery process.
WazirX’s proposal highlights the importance of creditor approval for timely resolution. If the plan moves forward, users can expect partial recovery through innovative mechanisms like recovery tokens (RTs) and RT purchase systems. However, rejection of the scheme could leave millions of Indian users stranded, exacerbating the financial impact of the hack. With over four million users affected, the outcome of the restructuring vote carries significant weight for India’s cryptocurrency community.
As the voting process approaches, WazirX urged users to understand the implications of both scenarios. The company’s ability to recover stolen funds hinges on cooperation from creditors and successful execution of the proposed plan. For now, all eyes remain on the Singapore Court and the decisions made by WazirX’s creditors, as they determine the future of one of India’s largest cryptocurrency exchanges.
