WazirX users vote again to support restructuring scheme after Singapore court struck down the first proposal

Users of the crypto exchange WazirX have voted once more in favour of a proposed restructuring scheme, announced the company this week, with supporters now hoping that the Singapore court will allow the proceedings to move forward so that asset recoveries can begin.

“With around 95.7% of participating Scheme Creditors voting in favor of the proposed Amended Scheme, the revote has surpassed the strong support received from Scheme Creditors in the last voting round,” noted WazirX in a press release, adding that 149,559 scheme creditors holding $206,892,988.7 in approved claims participated in the revote.

143,190 scheme creditors representing $195,751,998.5 in approved claims cast a vote in favour of the amended scheme, per the company.

According to the amended scheme, the distribution of recoveries to “Scheme Creditors” will be managed through Zanmai India, which is a reporting entity under the Financial Intelligence Unit of India.

In July 2024, WazirX lost more than $230 million after a multi-signature wallet it was managing with Liminal was hacked. The company responded by blocking access to users’ crypto and advancing its restructuring exercise through the Singapore legal system. The process is ongoing, as crypto investors anxiously wait to learn how much of their assets will be returned to them.

WazirX previously reported that 93.1% of voting creditors representing 94.6% in value had voted in favour of the first proposed plan. However, the exchange announced in early June that the Singapore High Court issued an order declining to approve its proposed restructuring plan. After this development, a second voting exercise was arranged.

WazirX has been criticised for its delay in informing investors about the hack that took place over a year ago and for blocking users’ access to their crypto. Many investors were further distressed to learn about WazirX’s ongoing ownership dispute with Binance, as well as the company’s decision to take its restructuring exercise to Singapore instead of resolving the matter within India.

“A second round of voting having such strong numbers is a testament to our approach towards the restructuring which has been fair, transparent, and the quickest option for users to recover funds. This has been an incredibly challenging year for all of us, and we are deeply grateful for the unwavering trust and support we’ve received throughout this journey. Should the Singapore Court sanction the Scheme, we are committed to restarting operations within 10 business days of the scheme taking effect,” said WazirX founder Nischal Shetty in a press release.