Indian cryptocurrency exchange WazirX has warned that repayments from the $235 million hack against it could be delayed until 2030 if creditors do not approve its proposed restructuring plan.
On Feb. 4, WazirX posted an image showing two different outcomes for creditors affected by the hack. If the restructuring plan is approved, the company said it could begin the process as early as April 2025, relaunch its platform, and distribute the first round of repayments.
The company said it would also launch a new decentralized exchange business and repay creditors through profit sharing and recovering stolen assets.
However, if the repayment scheme is rejected, the company warned that creditors might need to wait for up to five more years before finally getting their assets back.
Cointelegraph reached out to WazirX for comment but had not heard back by publication time.
WazirX says creditors could face repayment delays if they vote against the restructuring scheme. Source: WazirX
WazirX says rejecting the scheme may delay repayments to 2030
If the restructuring plan is not approved, WazirX said creditors might need to endure “unclear and potentially extended timelines.”
The exchange said creditors would need to wait for their ownership dispute to be resolved before they could be repaid.
In addition, the exchange warned users that if liquidation occurs before the ownership dispute is resolved, the asset repayment will be delayed, in fiat and of lower value because of liquidation costs.
“As fiat is distributed, market price driven upside following distributions is unlikely,” WazirX wrote.
WazirX also claimed that users could miss “near-term bull runs” because of the unclear and extended timelines.
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High Court of Singapore approves WazirX restructuring plan
On Jan. 23, the High Court of Singapore approved the WazirX restructuring plan. The court supported restructuring over liquidation, noting that quick distributions would be the best outcome for users.
Under the plan, the company estimates that users may recover up to 80% of their balances. The exchange plans to repay affected users by introducing recovery tokens, which represent claims and allow creditors to benefit from recovered assets and future platform profits.
WazirX will conduct a voting process that is expected to conclude in three months. If a majority vote is reached, net liquid assets will be distributed to users based on their claims within 10 days.
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