More than 90% of creditors back proposed restructuring, WazirX says

Over 90% of WazirX creditors have voted in favor of proposed restructuring plan, clearing a key hurdle ahead of court review in Singapore.

Creditors had nearly 10 days to cast their votes on Zettai’s restructuring plan — and by the end of it, overwhelming support poured in from WazirX users holding close to $196 million in claims, with more than 90% backing the proposal ahead of a Singapore court review.

In a blog announcement, WazirX, which lost over $230 million due to a hack orchestrated by North Korean Lazarus Group in July 2024, said the results “significantly exceed” the statutory voting threshold, which requires that at least a majority by count and at least 75% of the total value of claims from creditors present and voting must approve the scheme.

“The approval rate remained remarkably consistent between 92% and 95% across all creditor segments — from creditors with the smallest claims to creditors with the largest claims.”

WazirX

Held on the Kroll Issuer Services platform from March 19 to March 28, the voting process drew participation from over 141,000 creditors with $195.6 million in approved claims.

Zettai, the parent company of WazirX, said it will now seek court approval for the plan. If sanctioned, first distributions will begin within 10 business days, with trading and withdrawals resuming in phases. As part of the restructuring, WazirX plans to build its own decentralized exchange, though a launch timeline has yet to be confirmed.

A spokesperson for WazirX earlier told crypto.news that “if the majority of the voters choose to ‘Vote Yes’ for the Scheme, and it becomes effective, the first round of fund distribution of approximately 80-85% will happen in 10 business days.”

Founded in 2018 by Nischal Shetty, Siddharth Menon, and Sameer Mhatre, WazirX was once one of India’s largest crypto exchanges by trading volume. In December 2021, it reported an annual trading volume of over $43 billion, a 1,735% increase from 2020.

However, in July 2024 WazirX lost over $234 million in multiple crypto assets. The attack was traced back to North Korea’s state-sponsored hacking group, the Lazarus Group, according to a January press release by the U.S. Department of State. The same group was also involved in the CoinEx hack back in September 2023, where it scammed the exchange out of $54 million.