The crypto exchange WazirX has warned creditors that the rejection of the restructuring plan could lead to delays in repayments until 2030. The plan, already approved by the High Court of Singapore, aims to distribute funds starting from 2025.
Summary
The restructuring plan of the crypto exchange WazirX could accelerate refunds
The Indian cryptocurrency exchange WazirX has made an appeal to its creditors to approve the restructuring plan, warning that refusal could lead to significant delays in repayments.
The plan, approved by the High Court of Singapore, represents an opportunity to accelerate the compensation process in favor of the investors affected by the hack that stole approximately 235 million dollars.
WazirX has presented a clear projection for the creditors: if the plan is accepted, the first reimbursements could start as early as April 2025.
The exchange also aims to relaunch its platform and start a new decentralized trading activity, ensuring creditors compensation through the profits generated and the recovery of the stolen assets.
On the other hand, if the plan is not approved, the situation could become significantly more complicated. The exchange has warned that creditors might be forced to wait up to five years before recovering their funds.
Furthermore, in the absence of a clear refund structure, the refunded amounts could be negatively influenced by liquidation expenses and market volatility.
If the plan were rejected, the creditors would have to wait for the resolution of the dispute over the ownership of the assets before they could be reimbursed. This uncertainty could extend the waiting times, with the risk of seeing their funds depreciated over time.
WazirX has also warned users about the danger of missing out on short-term earning opportunities due to uncertain timing.
The platform emphasized that the current bull market cycle could offer recovery opportunities that, with prolonged delays, would be lost.
The approval of the restructuring by the Court
On January 23, the High Court of Singapore approved the restructuring plan of WazirX, deeming it preferable to the liquidation of the company.
According to the Court, a restructuring plan offers the possibility of making faster distributions, ensuring a more favorable outcome for users compared to a forced liquidation.
The exchange has estimated that, based on the new plan, creditors could recover up to 80% of their funds through the introduction of recovery tokens.
These tokens, representing credits on the company’s assets, would allow creditors to benefit both from the recovery of the stolen funds and from the future profits generated by the renewed platform.
In the next three months, WazirX will conduct a voting process among creditors to formally approve the plan. If the majority is in favor, the net liquid assets will be distributed to users within ten days of the conclusion of the vote.
This would allow a timely refund compared to the prospect of waiting until 2030 in the case of a rejection of the plan.
The administration of WazirX has reiterated the importance of this decision, emphasizing how the support of the creditors is crucial for the success of the relaunch strategy.
The company has committed to maintaining transparent communication and ensuring that the process is conducted with the utmost clarity and speed possible.
