- WazirX exchange secures 93.1% creditor approval for its restructuring plan following a $235 million hack.
- Users will receive 75-80% of claims in USDT, with remaining compensation coming through “recovery tokens.”
- The exchange has implemented new security measures including BitGo and Zodia custody and insurance coverage.
WazirX, the Indian cryptocurrency exchange devastated by a $235 million hack last year, has secured a crucial lifeline with over 93% of creditors voting in favor of its restructuring plan. The Singapore-based parent company, Zettai Pte. Ltd., announced on April 7 that 131,659 creditors supported the proposed Scheme of Arrangement, representing 93.1% by headcount and 94.6% by total claim value.
“We are grateful for the strong vote of confidence,” said WazirX founder Nischal Shetty in the announcement. “This consistent support across our entire base demonstrates shared belief in our restructuring approach and recovery plan.” The approval marks a critical milestone in the exchange’s recovery efforts after assets were frozen following the July 2024 security breach.
The restructuring plan, now headed for court sanction in Singapore, offers users between 75% to 80% of their claims in USDT, with the remainder covered through “recovery tokens” tied to WazirX’s profits and the launch of a new decentralized exchange. This arrangement avoids the potential five-year delay in withdrawals until 2030 that Zettai had warned about earlier this year without creditor approval.
To ensure transparency, global consultancy firm Alvarez & Marsal independently verified the voting results, with Managing Directors Joshua Taylor and Henry A. Chambers serving as assessors. The company has committed to sharing the formal vote report and anonymized results with all creditors.
The North Korean Connection
The crisis began in July 2024 when Hackers, later identified as North Korea‘s Lazarus Group, compromised the exchange’s multi-signature wallets. The attackers stole assets spanning over 200 tokens, including Ethereum, Shiba Inu, and Polygon. Investigators later tracked portions of the stolen funds moving through the formerly-sanctioned coin mixer Tornado Cash in a laundering operation involving 15,000 ETH.
The hack triggered immediate suspension of withdrawals and prompted a criminal investigation by Delhi Police’s IFSO division. In November, authorities arrested a suspect in West Bengal for allegedly creating a fraudulent WazirX account that enabled the unauthorized system access.
Security Overhaul and Industry Criticism
In February 2025, CoinDCX CEO Sumit Gupta criticized the exchange’s handling of the breach. “If WazirX and Phemex had disclosed all of their security breach details openly and transparently as Bybit did, the Safe{wallet} infra vulnerability could have been caught,” Gupta stated.
In response to the hack, WazirX has implemented several security improvements, including shifting crypto custody to BitGo and Zodia, introducing insurance coverage, and allocating $12 million for legal and recovery efforts. The exchange is now working toward a phased return to operations, with the creditor approval representing a significant step in rebuilding trust with its user base.
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