Catenaa, Thursday, February 06, 2025 – Indian cryptocurrency exchange WazirX warned Tuesday that repayments from its $234 million hack could be delayed until 2030, depending on the outcome of its restructuring plan.
The exchange outlined two possible scenarios: If creditors approve the restructuring, repayments will follow a structured plan with potential profit-sharing benefits. If rejected, creditors face years of uncertainty due to ongoing legal disputes.
The hack, which occurred in July, exploited a vulnerability in WazirX’s multisig wallet system. The breach was a significant blow to India’s crypto sector, which already struggles with low trading volumes due to regulatory pressures, including a 1% tax on each transaction.
If WazirX enters liquidation, creditors may recover less due to liquidation costs and prolonged timelines. The company warned that delays could cause creditors to miss potential market gains.
As the voting process nears, WazirX urged creditors to weigh their options carefully, emphasizing that the decision will shape the future of repayments.
