A restructuring plan has emerged for WazirX, a cryptocurrency platform based in India, where creditors will participate in a voting process. The timing for implementing the plan will be determined by the outcome of the upcoming vote, with a potential start date in April 2025 if conditions are met.
Restructuring Process and Voting
Creditors will vote on the proposed plan aimed at renewing the current structure. It is anticipated that a 75% majority, based on the value of votes, will approve the proposal. If this condition is fulfilled, the plan could be executed with court approval by April 2025.
WazirX stated, “If 75% of creditors vote positively, our restructuring plan will take effect in April 2025.”
Contents of the Plan and Possible Scenarios
If approved, the plan foresees the resumption of operations on the platform. Following this, the goal is to distribute cash assets to creditors within ten business days, allowing users to benefit from net liquid assets.
The proposal includes establishing a decentralized exchange platform, issuing recovery tokens, and implementing periodic buybacks of tokens. With the introduction of new revenue streams, sustainability of the process is aimed.
Should the plan not receive approval, the failure of the structure may lead to liquidation proceedings. In this scenario, assets might be sold at low valuations, resulting in lesser compensation for creditors.
The platform suffered significant losses due to a cyberattack in July 2024, where approximately $230 million in user funds were stolen. The transfer of stolen funds to various addresses complicated the recovery process.
The company faced criticism for its financial and reputational losses, leading to scrutiny over its communication and fund recovery efforts. Overall assessments reveal that the upcoming decision could play a critical role in the platform’s future, necessitating consideration of the interests of creditors and other stakeholders. Continuous updates are crucial for keeping users informed step by step.
