WazirX Warns Repayments From $234M Hack Could Be Delayed Until 2030

Indian cryptocurrency exchange WazirX has warned users that repayments from the $234 million hack in July 2024 may face long delays. If creditors reject the proposed restructuring plan, repayments might not begin until 2030.

The Singapore High Court has approved WazirX’s restructuring plan over liquidation, aiming to speed up fund distribution. However, the final decision depends on creditors. If they accept the plan, WazirX could begin repaying users by April 2025.

What happens next will significantly impact users waiting to recover their funds. Let’s break down the situation.

Background: The $234M WazirX Hack

In July 2024, WazirX suffered one of the largest exchange hacks in history. Attackers stole $234 million worth of digital assets, exploiting security vulnerabilities in the platform.

Since then, WazirX has struggled to recover funds and compensate affected users. The proposed restructuring plan aims to resolve this crisis, but delays remain a major concern.

Two Possible Outcomes for WazirX Users

Scenario 1: Creditors Approve the Plan (Early Repayments by 2025)

WazirX will resume operations and launch a new decentralized exchange.
The first round of repayments will begin by April 2025.
The company will use profits from its new business to compensate users over time.
Efforts will continue to recover stolen assets and distribute them fairly.

Scenario 2: Creditors Reject the Plan (Delays Until 2030)

WazirX may be forced into liquidation, selling assets at lower prices.
Repayments could face long delays, potentially until 2030 or beyond.
Legal disputes over asset ownership may further slow down compensation.
Users might receive significantly reduced payouts due to asset depreciation.

The creditors’ vote is crucial in determining whether users get their money back sooner or much later.

Why the Singapore High Court Supports Restructuring

The Singapore High Court has approved WazirX’s restructuring plan instead of liquidation. Here’s why:

✅ Faster Repayments – Restructuring allows WazirX to resume operations and generate funds for users.
✅ Better Asset Value – Liquidation would force a fire sale, reducing the total payout for users.
✅ User-Centric Approach – The plan focuses on maximizing creditor recovery instead of shutting down the exchange.

Despite court approval, creditors must vote in favor to move the plan forward.

How This Affects Crypto Users and Investors

For WazirX Users

If the plan is approved, they could start receiving funds by 2025.
If creditors reject the restructuring plan, WazirX may delay repayments from the $234M hack until 2030.
If rejected, users may have to wait years for repayments, with no guarantee of full compensation.

For the Crypto Industry

This hack highlights the risks of centralized exchanges (CEXs).
It reinforces the need for stronger security measures and user protection policies.
Investors may shift towards decentralized exchanges (DEXs) for safer trading.

How to Stay Updated on the WazirX Repayment Plan

Users and investors should stay informed about the latest developments. Here’s how:

🔹 Check official WazirX announcements for repayment updates.
🔹 Follow regulatory updates from Singapore and India.
🔹 Monitor crypto news platforms like Richmen.in, CoinTelegraph and CoinDesk.

WazirX Twitter Account: (Click here)

Conclusion

The future of WazirX repayments now depends on creditor decisions. While the Singapore High Court has backed the exchange’s restructuring plan, creditors must vote to approve or reject it.

If the plan moves forward, repayments may start in 2025. If not, users could be waiting until 2030 or facing severe financial losses.

This case serves as a reminder of why security, transparency, and investor protection are essential in crypto trading.