Indian cryptocurrency exchange WazirX warned on Tuesday that repayments related to the $234 million hack could be delayed—potentially until 2030—depending on the outcome of its restructuring scheme.
In an X post, the company outlined two possible scenarios: one if the restructuring scheme is approved and the other if it is rejected.
“Two paths, two very different outcomes,” WazirX emphasized, urging creditors to carefully consider their options as the voting process approaches.
The $234M Hack and Its Impact
Back in July, hackers infiltrated WazirX to steal crypto assets. They exploited a flaw in the exchange’s multisig wallet system, which required three out of six signatures to approve transactions.
The hack is a huge setback for the Indian crypto community, which is already under scrutiny from regulators.
Indian exchanges are under heavy pressure because of low trading volumes since the implementation of 1% TDS on each transaction.
Retail customers prefer foreign exchanges to avoid paying those taxes.
Despite these challenges, WazirX is moving forward with potential solutions to address repayment timelines, shaping the next steps for creditors.
Two Scenarios for WazirX Repayment: Restructuring vs. Liquidation
According to a diagram released by WazirX, a successful restructuring scheme would allow for a structured repayment plan, allowing creditors to recover their funds faster.
This approach would also benefit from profit-sharing mechanisms, potentially increasing the final amount recovered.
However, if the scheme is not approved, creditors could face years of uncertainty as the company’s ownership dispute remains unresolved.
WazirX warned that no next steps could be taken until this legal battle is settled, leading to a considerably extended repayment timeline.
Should WazirX enter liquidation, creditors may see their repayments reduced due to liquidation costs and the lack of additional recovery mechanisms.
The company also warned that a lengthy process could mean creditors miss out on future market gains, as their assets may be worth less when finally distributed.
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