WazirX Compensation Plan: The Exchange Implements Singapore Scheme to Reorganize and Compensate Hack Victims

WazirX Compensation Plan Aims to Reimburse Hack Victims and Prevent Collapse

WazirX, an Indian cryptocurrency exchange that was the target of a $235 million hack in July 2024, has revealed a reorganization plan that will compensate impacted users. With a restructuring plan under a Singapore Scheme of Arrangement, Zettai, the parent company running WazirX, applied for a moratorium at the Singapore High Court in August 2024.

A Singapore Scheme of Arrangement is a legal procedure that has been approved by the court and is used by businesses to reorganize their obligations. In order to ensure resolution and prevent liquidation, it enables the business to suggest a legally enforceable agreement with creditors.

WazirX to Distribute Tokens Representing Creditor Claims After Court Approval

WazirX declared liquid assets of $566.38 million USDT as of December 2024, which was more than the $546.47 million USDT in total claims submitted by customers in July 2024. In order to resolve unresolved claims, the business has also launched recovery tokens, which let creditors profit from recovered assets and future platform activities. The restructuring is a start toward rebuilding user trust, according to Nischal Shetty, creator of WazirX.

Our swift filing for the moratorium and application to the court for a Scheme process was a decisive step taken for the benefit of users so they can receive distributions as soon as possible. Token distributions will be made shortly after the Scheme is approved by creditors and sanctioned by the court […] my number one goal is to add more value than what was stolen.

Shetty

The company intended to return money through token distributions, which could provide 75% to 80% of the value of clients’ account balances at the time of the occurrence. Ten business days will pass after the plan is approved and put into action before the first disbursements are completed. A planned decentralized exchange (DEX) and platform operations revenue will be used to regularly repurchase recovery tokens, which will be used to represent the remaining creditor claims.

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