Indian cryptocurrency exchange WazirX is threatening its users to support its restructuring plans or risk their repayments being delayed until 2030.

On Feb. 4, WazirX shared an infographic outlining two possible scenarios for creditors. If the restructuring plan is approved, the exchange could begin the repayment process as early as April 2025, relaunch its platform, and initiate the first round of distributions.

As part of the proposal, WazirX also intends to launch a decentralized exchange, using profits and recovered assets to compensate creditors. But it is still not clear when exactly this platform will launch. But the DEX plan has at least one concrete date: April 2025, when WazirX expects a Singapore court to decide whether to approve it, assuming creditors back the proposal.

WazirX also claimed that if the majority of the voters choose to 'Vote Yes' for the scheme, and it becomes effective, the first round of fund distribution of approximately 80-85% will happen in 10 business days.

But if creditors were to reject the DEX route, they wouldn't have a clear timeline for fund recovery. WazirX also warned that this would also mean that the whole process could be potentially extended.

Potential Risks of Rejecting the Repayment Plan

Should the restructuring plan fail to gain approval, WazirX cautioned that creditors would face “unclear and potentially extended timelines.” The repayment process would remain on hold until ownership disputes surrounding the exchange are fully resolved.

Additionally, WazirX warned that if liquidation occurs before the ownership dispute is settled, repayments would not only be delayed but also issued in fiat at a lower value due to liquidation costs.

“As fiat is distributed, market price-driven upside following distributions is unlikely,” WazirX stated.

The exchange further suggested that creditors risk missing out on “near-term bull runs” due to these delays.

Proposal that sparked public outcry

Despite WazirX's promise, many users remain skeptical, with some critics arguing that the five-year delay is a strategic maneuver to coerce the creditors into accepting the new platform.

Others have directed their frustration at WazirX co-founder Nischal Shewtty, alleging that he continues to exert undue influence over the process. The company's past communication failures and its inability to recover stolen funds have only fueled distrust among investors.

Adding to the uncertainty, India's government recently imposed a 70% penalty on undisclosed crypto gains. This move could have significant tax implications for WazirX users receiving tokens, further complicating the decision-making process.

With voting set to take place in the coming weeks, WazirX creditors face a difficult choice: accept the restructuring plan and wait for potential recovery or risk liquidation, which could take years with lower payouts.

For WazirX, the outcome of the vote will determine if it can rebuild or face in insolvency.

Singapore High Court Approves WazirX Restructuring Plan

On Jan. 23, the High Court of Singapore approved WazirX’s restructuring proposal, favoring it over liquidation. The court emphasized that restructuring would result in quicker distributions, providing the best outcome for users.

Under the plan, affected users could recover up to 80% of their balances. WazirX plans to introduce recovery tokens, representing creditor claims and enabling them to benefit from recovered funds and future platform profits.

The exchange will conduct a creditor vote over the next three months. If the plan secures majority approval, WazirX aims to distribute net liquid assets to users within 10 days of the vote’s conclusion.