WazirX creditors will vote to decide on approving the restructuring plan extending it to 5 years

BlockBeats News, February 5th, WazirX creditors will decide in the coming weeks whether to start receiving compensation in cryptocurrency as early as April 2025 or face a potential extended recovery process until 2030. This vote comes following a ruling by the High Court of Singapore, which allowed the troubled Indian exchange to seek a restructuring plan instead of facing liquidation, depending on whether three-quarters of the creditors approve the recovery plan.

If the threshold is met, WazirX will roll out a phased compensation plan, including launching a DEX, issuing recovery tokens, and implementing regular buybacks to compensate affected users.

If the vote fails, the platform will be forced into liquidation, with the company noting that this process could take several years with reduced returns for creditors. While WazirX claims creditors could recover up to 80% of their balances through its new DEX and recovery token model, its proposed recovery plan remains controversial. (CryptoSlate)