WazirX’s amended restructuring plan has gained 95.7% approval in the revote, bringing users another step closer to recovering their crypto.
WazirX Restructuring Heads Back To Court After Overwhelming Support
Indian crypto exchange WazirX became prey to a notorious hack in July of last year, in which it lost user funds amounting to about $235 million, nearly half of what its reserve had at the time. WazirX shut down its withdrawals in response, and to this day, the remaining user funds have sat in the custody of the exchange.
This may finally be about to change, however, as the platform has cleared a crucial step in restarting operations. As announced by the exchange in a blog post, users have voted in favor of the latest restructuring plan.
The vote occurred between July 30th and August 6th, and asked creditors whether they approve of the platform’s restructuring scheme. This was actually the second vote done by the exchange. The first vote occurred back in March, and 93.1% of creditors were in favor of it. So, why did a revote have to take place?
The answer is that even though creditors approved of the crypto distribution plan, Zettai PTE LTD, a Singaporean entity responsible for handling WazirX’s crypto funds, couldn’t get it sanctioned through the Singapore High Court due to compliance issues.
Last month, the company again went to court with an amended proposal, and this time, it obtained the thumbs-up. The change from the previous restructuring plan was that WazirX’s Indian parent entity, Zanmai Labs, would instead handle user withdrawals, not Zettai.
The revote was to get creditors’ approval on this new restructuring scheme. The results are now in, with 95.7% of users saying yes, slightly more than the previous vote. By value of approved claims, these creditors make up 94.6% of the total.
“A second round of voting having such strong numbers is a testament to our approach towards the restructuring, which has been fair, transparent, and the quickest option for users to recover funds,” said Nischal Shetty, WazirX founder.
The next step for the exchange is to return to the Singapore High Court to get the creditor-approved amended scheme sanctioned. According to an email sent out to creditors, the platform has already made a filing with the court, ahead of the earlier planned date of August 21st.
“Should the Singapore Court sanction the Scheme, we are committed to restarting operations within 10 business days of the scheme taking effect,” noted Shetty.
Last month, another Indian crypto exchange, CoinDCX, also fell prey to a $44 million hack. The timing of the attack was eerie, coming one year after the WazirX incident almost exactly to the date (July 18th vs July 19th).
Bitcoin Price
Bitcoin recovered toward $117,000 on Monday, but it appears the asset’s momentum has already faded as its price is now back at $115,600.
