Indian Crypto Exchange WazirX Claims 95% Creditor Approval But Users Accuse Exchange of Pressuring Victims After $230 Million Hack

WazirX Claims Over 95% Approval in Restructuring Amid Skepticism From Users

Indian crypto exchange WazirX says it has secured overwhelming support for its amended restructuring plan, but doubts linger among the community about the process and fairness.

The exchange, which collapsed after a $230 million hack in 2024, reported that 95.7% of voting creditors and 94.6% by value of approved claims backed the plan in a second round of voting.

How the Vote Played Out

The vote was organised by WazirX’s parent company, Zettai Pte Ltd., and conducted through Kroll Issuer Services between 30 July and 6 August.

Participation was limited to account holders with positive balances on 18 July 2024.

Out of 149,559 creditors representing $206.9 million in claims, 143,190 voted in favour, surpassing the statutory thresholds required under Singapore law.

Independent assessors Joshua Taylor and Henry Anthony Chambers of Alvarez & Marsal verified the results.

Founder Nischal Shetty described the outcome as proof of the exchange’s approach.

“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.”

He added that, should the Singapore Court sanction the scheme, WazirX plans to restart operations within 10 business days.

Why Skepticism Persists Despite High Approval Rates

Despite the reported support, many users remain unconvinced.

Social media polls tracking the vote suggested far higher opposition, with some victims of the hack claiming they were pressured or misled.

Critics argue that WazirX’s plan undervalues payouts, calculating recoveries based on token prices from July 2024 when markets were down more than 50% compared to today.

Past controversies continue to cast a shadow.

WazirX’s original restructuring plan, which also claimed over 96% approval, was rejected by a Singapore court last year for misleading information.

Users contend that the amended plan shifts most losses to customers while enabling the exchange to pursue new ventures, including a planned decentralised exchange (DEX).

Allegations include funds being moved to other platforms and liquidated to cover legal costs and that rejecting the plan could delay payouts by three to five years—seen by some as a tactic to push creditors toward approval.

Security Failures Highlighted by Hack

The $230 million hack in 2024 exposed significant operational weaknesses, including the storage of over 40% of customer funds in a single wallet.

Following the breach, withdrawals of both crypto and INR deposits were frozen, and WazirX relocated operations to Singapore, initiating the restructuring process that critics argue prioritised the platform’s survival over user interests.

Next Step Hinges on Singapore Court Approval

With voting complete, Zettai has filed an amended summons with the Singapore High Court seeking sanction of the scheme.

If approved, the Amended Scheme will allow the first distribution of crypto balances within 10 business days, offering users a long-awaited return of their holdings.

For now, the future of WazirX’s recovery plan remains in the hands of the court, with both supporters and sceptics awaiting the ruling.