Creditors Support WazirX Restructuring to Compensate $230M Hack Victims

WazirX has taken a major step toward compensating victims of its massive 2024 security breach, after creditors overwhelmingly backed a restructuring proposal designed to unlock partial asset recovery.

The crypto exchange announced that over 93% of creditors by both number and claim value voted in favor of the Scheme of Arrangement. The vote, conducted via Kroll Issuer Services between March 19 and March 28, included more than 141,000 verified creditors with claims totaling nearly $196 million.

Specifically, 131,659 creditors representing $184.99 million approved the plan — exceeding the thresholds required under Singapore’s Companies Act, which demands a majority in number and 75% of claim value. WazirX’s parent company, Zettai, is incorporated in Singapore.

Failure to pass the scheme would have triggered liquidation proceedings, with WazirX warning earlier this year that such a path would likely delay any repayment until 2030 and drastically reduce recovery prospects.

With the green light from creditors, Zettai will now seek court approval to finalize the arrangement. Once approved, the plan will initiate a first round of payouts within 10 business days and gradually reinstate withdrawals and trading services, depending on regulatory clearance.

The broader recovery framework includes launching a decentralized exchange (DEX), issuing tradeable recovery tokens, and conducting regular token buybacks funded by platform profits and future income streams.

WazirX’s security breach in July 2024, which saw over $230 million drained in a hack attributed to the Lazarus Group, stemmed from a private key compromise. The exchange pointed to custody partner Liminal as the source of the failure, a claim Liminal rejected, instead blaming WazirX’s own security weaknesses.

In the aftermath, the stolen funds were laundered through Tornado Cash, effectively obscuring their trail and dimming hopes of a full recovery. Still, the newly approved scheme offers a structured path forward for affected users.