In a significant development for India’s crypto ecosystem, Zettai Pte, the parent company of WazirX, announced on April 7 that 93.1 percent of impacted creditors have voted in favour of the proposed scheme of arrangement. This scheme will allow the hacked exchange to recover and distribute funds stuck on the platform.

The approval marks a major step toward restoring operations and user trust after the 2024 cyber attack that saw WazirX lose nearly 45 percent of its crypto assets, valued at approximately $234 million.

Voting Results and Legal Process

The creditor voting took place on the Kroll Issuer Services platform between March 19 and March 28, 2025. Of those who voted, a whopping 94.6 percent by asset value supported the restructuring proposal.

This overwhelming support gives Zettai Pte and WazirX a strong mandate to move forward. The company will now file an application with the High Court of Singapore to get the sanction of the approved scheme.

Upon receiving the court's nod, WazirX plans to resume user withdrawals and trading in a phased manner, with a strong emphasis on regulatory compliance and user accessibility.

Background: The 2024 Multi-Sig Wallet Breach

In 2024, WazirX experienced a devastating cyber attack involving one of its multi-sig wallets. The breach led to the loss of crypto assets worth $234 million, accounting for nearly 45 percent of the platform’s total holdings at the time.

This event rattled investor confidence and brought scrutiny upon the security protocols of Indian crypto exchanges. Since then, WazirX has been actively working on a recovery and restructuring plan, which culminated in the current creditor approval milestone.

85 Percent Fund Recovery for Users

According to the new plan, users will be eligible to receive up to 85 percent of their total funds as of January 17, 2025, through a rebalanced token mix. This strategy takes into account the fluctuating market value of held tokens since the hack.

• If a user’s token value increased, they may receive fewer tokens, but the equivalent value will match 85 percent of their original portfolio.

• If token values decreased, users will receive a larger number of tokens to meet the 85 percent fund value.

This innovative rebalancing approach ensures fair and proportional recovery for all affected users, depending on market movements since January 2025.

Nischal Shetty’s Statement on Community Support

Nischal Shetty, Founder of WazirX, expressed gratitude to the community, saying:

“We are grateful for the strong vote of confidence. This consistent support across our entire base demonstrates shared belief in our restructuring approach and recovery plan.”

In a recent interview with Moneycontrol, Shetty projected that WazirX could achieve a 90-145 percent recovery in the next three years, driven by a blend of fund returns, trading resumption, and platform improvements.

Phased Resumption of Withdrawals and Trading

The return of trading and withdrawal capabilities will happen in stages, rather than all at once. This phased rollout aims to:

• Ensure smooth user experience

• Comply with regulatory requirements

• Maintain operational stability

The company aims to avoid the chaos that might follow an instant reopening by implementing strict monitoring and control measures at each step of the process.

What Happens Next?

With the creditor vote secured and the legal filing underway, the next steps for WazirX include:

1. Filing with the High Court of Singapore for final sanction

2. Technical implementation of the fund rebalancing system

3. User communication and guidance regarding token distribution

4. Step-by-step activation of user withdrawals and trading features

The crypto community is watching closely, as WazirX’s successful restructuring could serve as a case study for post-hack recovery in the broader blockchain ecosystem.

Challenges Ahead

While creditor approval is a major victory, challenges still remain, such as:

• Restoring full user confidence

• Securing the platform against future cyber threats

• Adhering to India’s evolving crypto regulatory framework

• Managing token valuation volatility during phased rollouts

The coming months will test WazirX’s technical preparedness, legal coordination, and user engagement capabilities.

Conclusion

WazirX’s journey from a crippling $234 million cyber attack to gaining 93 percent creditor support is a testament to the resilience of both the platform and its user community. The structured recovery plan, backed by legal oversight and community trust, offers a glimmer of hope to those impacted.

As India’s crypto sector matures, such recovery mechanisms will play a critical role in investor protection, trust-building, and long-term ecosystem growth.

With the High Court of Singapore’s sanction expected soon and phased fund distribution on the horizon, WazirX seems poised to not just survive—but possibly emerge stronger than before.

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