The future of WazirX’s recovery is now clearer than ever, as more than 90% of voting creditors have approved the cryptocurrency exchange’s post-hack restructuring proposal. This landmark decision sets the stage for a structured repayment process that combines liquid assets with innovative recovery tokens—aimed at restoring user trust and accelerating compensation.
Creditors Show Strong Support for Recovery Plan
In a pivotal development announced on April 7, over 93.1% of participating creditors voted in favor of the restructuring plan, representing 94.6% of the total claim value. The vote, conducted between March 19 and March 28 via Kroll Issuer Services, included all users who held digital assets on the platform at the time of the breach.
This overwhelming approval signals strong confidence in WazirX’s roadmap to recovery and marks a turning point in one of India’s most high-profile crypto exchange incidents.
A Timeline of Crisis and Response
Back in early February, WazirX issued a stark warning: if the restructuring plan failed to gain approval, repayments related to the $235 million hack could be delayed until as late as 2030. The exchange emphasized that rejection would lead to an “unclear timeline” and “significantly extended repayment periods” for affected users.
Now, with the plan officially endorsed, WazirX can move forward with concrete steps toward restitution—avoiding prolonged legal and financial uncertainty.
Nischal Shetty, co-founder and CEO of WazirX, described the outcome as a “critical milestone in our recovery journey,” highlighting that it reflects “a shared belief in the proposed path forward.” He added:
“The mandate is clear. We’re committed to rebuilding the platform and delivering long-term value for all users.”
How the Repayment Strategy Works
The approved restructuring plan operates under Singaporean legal supervision and was first unveiled in January. It hinges on two key components:
- Liquidity reserves: WazirX currently holds $566.4 million in USDT**, exceeding the total claims of **$546.5 million.
- Recovery tokens: These newly issued tokens allow creditors to benefit from future platform revenues and asset recoveries.
Under the terms, eligible users can receive 75% to 80% of their account value (as of the hack date) in immediate compensation through available liquidity. The remaining balance will be represented by recovery tokens, which will be periodically repurchased using profits generated from:
- Ongoing exchange operations
- Revenue from a planned decentralized exchange (DEX)
Shetty emphasized that this model ensures creditors remain invested in the platform’s long-term success—even beyond direct payouts.
Building a More Secure Future: The DEX Initiative
To prevent future breaches, WazirX plans to launch a decentralized exchange by November 2024—a move designed to shift control back into users’ hands.
“The ideal scenario is self-custody—where your assets are fully under your control, and you can trade or manage them freely,” said Shetty.
He also noted that the upcoming DEX will prioritize usability, aiming to deliver a user experience comparable to centralized platforms (CEXs), despite operating on decentralized infrastructure.
This focus on accessibility could bridge the gap between traditional crypto users and DeFi adopters—offering both security and simplicity.
👉 See how next-gen exchanges are redefining security and user control in digital asset management.
The 2024 Hack: What Happened?
In mid-July 2024, WazirX suffered a devastating breach resulting in the loss of $234.9 million worth of digital assets. The attack exploited a vulnerability in the Safe Multisig wallet, allowing hackers to swiftly drain funds.
Cybersecurity investigators attribute the assault to a North Korea-linked hacking group, known for sophisticated, state-sponsored cyber operations targeting blockchain platforms globally.
In response, WazirX has since transitioned its custody solutions to trusted providers including BitGo and Zodia, both offering enhanced fund protection and insurance coverage—a crucial step toward restoring institutional-grade security standards.
Broader Industry Implications
The WazirX incident underscores a growing threat within the crypto ecosystem: multisig-related attacks.
According to recent data, over $2 billion** was lost to hacking incidents across the crypto industry in Q1 2025 alone—with nearly **$1.63 billion stemming from access control vulnerabilities.
Notably, this marks the third consecutive quarter where multisig exploits have ranked as the top attack vector—a trend closely monitored by security firms like Hacken.
“Securing digital assets requires more than just robust on-chain code,” Hacken warned. “The entire infrastructure—from front-end interfaces to internal processes—must be fortified. One weak link can collapse the entire system.”
This insight highlights the urgent need for holistic security frameworks across centralized and decentralized platforms alike.
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Frequently Asked Questions (FAQ)
What percentage of WazirX creditors approved the restructuring plan?
Approximately 93.1% of voting creditors supported the plan, representing 94.6% of total claim value, indicating broad consensus among affected users.
How will users be compensated after the hack?
Eligible users will receive 75%–80% of their pre-hack account value in USDT. The remainder will be covered through recovery tokens, which will be repurchased using future platform profits.
What are recovery tokens?
Recovery tokens are digital instruments issued by WazirX that represent outstanding claims. Holders benefit from periodic buybacks funded by revenue from operations and a planned decentralized exchange.
Is WazirX launching a decentralized exchange?
Yes. Scheduled for release in November 2024, the new DEX aims to offer self-custody options and improved security while maintaining ease of use similar to centralized platforms.
Was the WazirX hack linked to North Korea?
Yes. Cybersecurity analysts have attributed the July 2024 attack to a North Korea-affiliated hacking group, known for targeting crypto platforms using advanced exploit techniques.
How is WazirX improving security after the breach?
WazirX has partnered with BitGo and Zodia for institutional-grade custody solutions, implemented enhanced operational protocols, and introduced insurance coverage to protect user assets.
👉 Explore how advanced custody solutions are reshaping trust in crypto exchanges today.
Final Thoughts
The approval of WazirX’s restructuring plan represents more than just financial rehabilitation—it’s a testament to resilience in the face of crisis. By combining immediate liquidity with forward-looking recovery mechanisms, the exchange is setting a precedent for how platforms can respond responsibly after major security failures.
As the crypto industry evolves, so too must its approach to security, transparency, and user empowerment. With initiatives like self-custody DEXs and profit-sharing tokens, WazirX may be laying the groundwork for a new standard in post-breach recovery—one that balances urgency with sustainability.