WazirX Restructuring Proposal Receives 95% Support from Creditors, Pending Court Decision

Indian cryptocurrency exchange WazirX has garnered significant backing from creditors, with over 95% of voters supporting its recent restructuring plan, which is now pending regulatory approval from the Singapore High Court.

The creditor vote on the restructuring framework indicates that the plan now requires judicial endorsement from Singapore’s court to authorize the Amended Scheme following the hacking incident that affected the platform.

Update on Amended Scheme of Arrangement Revote
95.7% of voting Scheme Creditors supported the Amended Scheme of Arrangement. The Amended Scheme was also supported by 94.6% of associated Approved Claims. This outcome reaffirms the strong support shown in the first round of… pic.twitter.com/hVCZqRXIuZ

— WazirX: India Ka Bitcoin Exchange (@WazirXIndia) August 18, 2025

In a recent announcement, WazirX Founder Nischal Shetty stated that the restructuring plan includes preparations for the platform to resume operations and restore trading services for users “within 10 business days of the scheme taking effect.”

WazirX Creditor Voting Results and Process

The voting process, organized by parent company Zettai Pte Ltd., was carried out through Kroll Issuer Services from July 30 to August 6, with eligibility limited to account holders with positive balances as of July 18, 2024.

A total of 149,559 creditors representing $206.9 million in validated claims participated in the process.

Among all participants, 143,190 creditors representing $195.7 million endorsed the proposal, surpassing the statutory thresholds set forth under Section 210(3AB) of the Singapore Companies Act 1967.

WazirX shared the results on social media, revealing that exactly 95.7% of participating Scheme Creditors supported the Amended Scheme of Arrangement.

The cryptocurrency exchange noted that “this outcome reaffirms the strong support shown in the first round of voting and reflects our community’s continued confidence in the restructuring plan.”

The restructuring framework suggests asset distribution through Zanmai India, which operates under the oversight of India’s Financial Intelligence Unit, aimed at ensuring transparency and regulatory compliance.

Source: X/WazirX

Upon court acceptance of the filing, Zettai will inform creditors through official communications, including copies of the pertinent legal documents.

This marks the second restructuring vote to proceed after the Singapore Court previously rejected the initial proposal.

While the first plan also received majority creditor support, judicial authorities raised concerns regarding the proposal’s equity and practical feasibility.

During that time, the exchange faced criticism from disgruntled creditors who accused it of fraudulent behavior due to prolonged delays.

So basically WazirX fund recovery options are:
→ Trust another WazirX product with your money (again).
→ Wait until 2030 to maybe get your funds back in fiat.
Is this even real? Absolute joke. pic.twitter.com/WV3XYqyqNe

— IshitaPandey.eth (@IshitaaPandey) February 4, 2025

The platform initially pledged to redistribute assets by February 2025, leading many to suspect that the exchange was leveraging legal complexities to delay user repayments.

Subsequently, in June, WazirX sought reconsideration, and the court allowed additional arguments while extending the protective moratorium.

By August 2025, judicial authorities mandated a second vote on the revised restructuring scheme, giving WazirX another chance to advance its proposal.

WazirX Creditors Uncertain About Recovery Timeline of Funds

A significant incident occurred in July 2024 when the WazirX platform experienced a cyberattack allegedly carried out by North Korea’s Lazarus Group, according to intelligence from the U.S. Department of State.

The event resulted in losses exceeding $230 million, accounting for 45% of the platform’s total $500 million in holdings.

WazirX’s Singapore-registered parent company, Zettai Pte Ltd, promptly sought creditor protection and received a four-month moratorium from Singapore’s High Court in September 2024, allowing time to formulate a comprehensive restructuring plan.

Despite the favorable voting outcome, WazirX customers remain doubtful about the prospects for recovering their funds.

In February, the cryptocurrency exchange indicated that reimbursements might be delayed, potentially extending until 2030, depending on the final approval status of the restructuring scheme.

The company’s communication outlined two scenarios: one if the restructuring is approved and another if it is rejected.

According to WazirX’s published framework, successful restructuring would facilitate systematic repayment scheduling, enabling creditors to recover assets more effectively.

Two paths, two very different outcomes.
Here’s a breakdown of what happens if the Scheme is approved versus if it isn’t. Understand what to expect in both scenarios as we approach the voting process. pic.twitter.com/ZcXpC8g79Q

— WazirX: India Ka Bitcoin Exchange (@WazirXIndia) February 4, 2025

However, if the scheme is rejected, creditors may face prolonged uncertainty while the company’s ownership disputes remain unresolved.

If WazirX moves toward liquidation, creditors might see diminished recoveries due to liquidation costs and the lack of recovery enhancement mechanisms.

The company also cautioned that extended proceedings could lead to creditors missing out on future market appreciation, as asset values may decline by the time of final distribution.

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