The crypto world has always been experiencing its fair share of setbacks, but very few stories are as crucial as WazirX. After facing a $230 million cyberattack, the exchange is now at a pivotal moment—which requires voting to determine the future of the funds and WazirX’s comeback.
The users have a decisive choice to make: either vote in favor of the Restructuring Scheme and regain access to the funds sooner or reject it and potentially face years of uncertainty. With the voting window set between March 19-28, this decision is going to shape the future for thousands of impacted users.
Scheme of Arrangement
According to Singapore law, a Scheme of Arrangement is a way for a company to reach a compromise with its creditors. It helps the company manage its debts by changing the terms of what it owes.
For the scheme to take effect:
- Creditors must vote – A majority of creditors (by number) and at least 75% of the total debt value must agree.
- Court approval is needed – Once the Singapore Court approves the plan, it becomes legally binding on all creditors, even those who didn’t agree.
This process allows the companies to undergo restructuring and continue operating while ensuring creditors get a fair and equitable resolution.
Details of the Proposed Scheme
The proposed scheme aims to provide a swift and fair resolution regarding crypto balances on the platform. Instead of liquidation, the company believes the scheme is the best option, especially considering such a massive cyberattack and the uncertainty of the Binance Dispute.
Here are the key components of the scheme:
- Initial Distribution: Once the scheme is effective, an initial payment will be made within 10 business days using the available Net Liquid Platform Assets.
- Recovery Tokens: Creditors will receive Recovery Tokens on a pro-rata basis. Recovery Token holders may receive additional payouts, which will come from extra funds (Net Shared Surpluses) and recovered Illiquid Platform Assets, which will help increase the recovery amount.
- Rebalancing: The available assets have been adjusted to match the original token types of approved claims. As of February 10, 2025, this means creditors can expect to recover up to 85% of their balances.
WazirX & Transparency
WazirX has emphasized that the restructuring scheme is designed to maximize user fund recovery rather than anything else. Unlike many failed crypto platforms that left users in limbo, WazirX has been committed to returning funds as swiftly as possible.
WazirX has taken a structured approach to keep users informed and ensure a smooth recovery process. They have consistently shared updates through their social media channels, launched a bounty program, and filed a moratorium application at the right time. Additionally, they have held multiple townhalls to keep users updated on every step of the process. A Committee of Creditors has been formed to represent stakeholders’ interests, and they have even worked on rebalancing the assets, which allows the users to see how much they will receive once the restructuring scheme is approved.
What do you choose: Immediate Recovery or a Long Wait?
WazirX’s restructuring scheme presents two clear options for all the creditors:
- Accept the restructuring scheme – This option enables users to regain a substantial portion of the assets in a timely manner through a rebalanced token distribution.
- Decline and wait – In this option, users may have to wait until as late as 2030 to get hold of the funds, with no guarantee of a better outcome. Also, these funds will either be in USD or INR, which also means users won’t get any crypto and won’t be able to enjoy the benefits of a bull run.
The urgency behind this decision is not just about preference but about pragmatism. Given the volatile nature of crypto markets and the prolonged legal uncertainties of fund recovery, waiting until 2030 carries significant risks.
Why is Voting YES a Rational Choice?
Rejecting the scheme means extending the waiting period. The practical choice is clear, given the choice between getting a majority of assets now vs. navigating a long legal battle. A YES vote ensures:
- Quicker access to funds
- A structured and balanced asset distribution
- Avoidance of prolonged uncertainty and legal complications
Additionally, WazirX has demonstrated resilience and commitment to its users by taking necessary steps towards a stable recovery. The voting process is an essential part of this journey, allowing users to have a say in their financial future rather than relying on lengthy legal proceedings.
