In a significant development for the crypto recovery landscape, over 90% of WazirX creditors have voted in favor of the exchange’s post-hack restructuring plan — a critical step toward user compensation following a devastating $235 million security breach. The approval sets the stage for a structured payout mechanism combining liquid assets and innovative recovery tokens, signaling renewed confidence in the platform’s path to restoration.
Creditor Support Reaches Over 93%
According to an official announcement released on April 7, 93.1% of voting creditors backed the restructuring proposal, representing 94.6% of total claim value. The vote, conducted between March 19 and March 28 via Kroll Issuer Services, included all users who held digital assets on WazirX at the time of the attack.
This overwhelming support underscores strong community trust in the proposed resolution framework and marks a turning point in one of India’s most high-profile crypto exchange incidents.
A Clear Path to Repayment
Nischal Shetty, co-founder and CEO of WazirX, emphasized that asset recovery is now the top priority. In an interview with Cointelegraph, he stated:
“With the plan approved, our immediate focus shifts to reclaiming lost funds. But beyond that, profit-sharing mechanisms will play a vital role in compensating affected users.”
The restructuring plan operates under Singaporean legal oversight and was first unveiled in January 2025. It outlines that WazirX holds $566.4 million in USDT liquidity**, exceeding the total claims of **$546.5 million in USDT, ensuring full coverage of verified debts through stablecoin payouts.
This surplus not only strengthens creditor confidence but also provides a financial buffer for operational continuity during recovery.
Dual Compensation Mechanism: Liquidity + Recovery Tokens
To ensure fair and sustainable repayment, WazirX has introduced a two-pronged compensation model:
- Immediate USDT Payouts: Eligible users will receive 75% to 80% of their account value (as recorded at the time of the hack) in liquid USDT.
Recovery Token Allocation: The remaining balance will be represented through newly issued recovery tokens, which entitle holders to future returns derived from:
- Ongoing platform revenues
- Proceeds from recovered assets
- Profits generated by a planned decentralized exchange (DEX)
These recovery tokens will be periodically repurchased using income streams from WazirX’s operations, creating long-term value alignment between the platform and its users.
Building a Safer Future: The Upcoming Decentralized Exchange
One of the most anticipated elements of WazirX’s revival strategy is the launch of its own decentralized exchange, scheduled for release in November 2024. Shetty believes this move will fundamentally reduce centralized risks:
“The ideal scenario? You hold your assets in self-custody — fully under your control — and trade or transfer them freely.”
Unlike traditional centralized exchanges (CEXs), where users surrender custody of their keys, the new DEX aims to combine self-sovereign ownership with an intuitive interface. Shetty told Cointelegraph:
“Our goal is to make it as easy to use as our current CEX — no complex wallet setups or confusing interfaces.”
By merging ease-of-use with decentralization, WazirX hopes to attract both novice and experienced traders while minimizing exposure to future hacks.
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The 2024 Hack: A Nation-State Cyberattack
In mid-July 2024, WazirX suffered a catastrophic loss of $234.9 million due to a vulnerability in its Safe Multisig wallet. Forensic investigations later attributed the attack to a North Korea-linked hacking group, known for targeting cryptocurrency infrastructure with precision and speed.
Such state-sponsored cyberattacks have become increasingly common, posing systemic risks not just to individual platforms but to entire national crypto ecosystems — especially in emerging markets like India.
To prevent recurrence, WazirX has since migrated its custody solutions to enterprise-grade providers including BitGo and Zodia Custody, both offering enhanced security protocols and insurance-backed protection.
Shetty confirmed these partnerships include comprehensive insurance coverage, adding another layer of resilience against future threats.
Industry-Wide Lessons from the Breach
The WazirX incident highlights broader vulnerabilities within the crypto industry:
- In Q1 2025 alone, over $2 billion was lost globally due to cyberattacks.
- Nearly $1.63 billion stemmed from access control flaws — particularly in multisignature wallets.
- This marks the third consecutive quarter where multisig-related exploits ranked as the leading attack vector.
Hacken, a leading blockchain security firm, issued a stark warning:
“Securing digital assets requires more than just robust smart contracts. The entire infrastructure — from front-end interfaces to internal processes — must be fortified. One weak link can collapse the whole system.”
This insight reinforces the need for end-to-end security audits, real-time monitoring, and proactive threat intelligence across all layers of crypto platforms.
Frequently Asked Questions (FAQ)
Q: What percentage of WazirX creditors approved the restructuring plan?
A: 93.1% of voting creditors approved the plan, representing 94.6% of total claim value.
Q: How much did WazirX lose in the hack?
A: Approximately $234.9 million in digital assets were stolen in July 2024 due to a multisig wallet vulnerability.
Q: Will users get back all their lost funds?
A: Users are expected to recover 75%–80% in immediate USDT payouts, with the remainder covered via recovery tokens tied to future platform profits and asset recoveries.
Q: What is the role of recovery tokens?
A: Recovery tokens represent unpaid balances and allow holders to benefit from future revenue generated by WazirX operations and asset recoveries. They will be repurchased over time using platform profits.
Q: Is WazirX launching a decentralized exchange?
A: Yes, a new DEX is planned for launch in November 2024, designed for self-custody and ease-of-use comparable to centralized exchanges.
Q: Who was behind the WazirX hack?
A: The attack has been linked to a North Korea-affiliated cyber group known for targeting cryptocurrency platforms globally.
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Conclusion: A Model for Post-Hack Recovery?
WazirX’s creditor-approved restructuring plan may set a precedent for how crypto platforms handle major breaches. By combining transparent governance, legal oversight, liquidity assurance, and innovative token-based compensation, the exchange is charting a responsible path forward.
While challenges remain — particularly in asset recovery and rebuilding public trust — the strong creditor mandate reflects optimism about WazirX’s long-term viability. As the industry evolves, such structured responses could become the standard for crisis management in decentralized finance.
For users and observers alike, this case underscores a critical truth: in crypto, resilience isn’t just about technology — it’s about accountability, adaptability, and putting users first.