More than 90% of WazirX voting creditors choose to support restructuring scheme

Voting took place between March 19 and March 28 [File]
| Photo Credit: REUTERS

More than 90% of WazirX’s voting creditors who had to choose last month whether or not to support the crypto exchange’s post-hack restructuring plan voted in favour of the company’s scheme, shared WazirX in a press release.

WazirX noted that 93.1% of voting creditors representing 94.6% in value voted in favour of the restructuring scheme that the exchange said would allow it to resume operations sooner. WazirX also added this voting rate was “remarkably consistent between 92% and 95% across all creditor segments.”

“In total, 141,476 Scheme Creditors representing USD195,650,529.03 in Approved Claims cast a vote. Of Scheme Creditors who voted, 131,659 Scheme Creditors representing USD184,997,156.31 in Approved Claims cast a Scheme Vote ‘FOR’ the Scheme. This represents 93.1% by count and 94.6% by value of voting Scheme Creditors in support of the Scheme,” noted WazirX in a press release.

WazirX said that the voting process was conducted via the Kroll Issuer Services platform between March 19 and March 28.

Some WazirX users had flagged this a potential conflict of interest and wanted the voting to be carried out on a completely independent platform. Other users expressed regret and sadness that they had missed out on collecting their crypto profits when Bitcoin rose to record highs late last year and crossed the $100,000 mark.

Last summer, WazirX’s multi-signature wallet managed with Liminal was hit by a hack that led to the loss of more than $230 million. The attack was later attributed to North Korean hackers. WazirX locked up customers’ crypto funds and moved for legal action and restructuring in Singapore. For months, WazirX investors have been waiting to see when they will get back access to their own funds. The company’ restructuring plan was one proposal that potentially would allow the exchange to resume operations.

The next step is for the Singapore court to sanction the creditor-approved scheme. Pending approvals, first distributions are set to begin within 10 business days of the Scheme becoming legally effective.

Other trading activities are set to resume in phases, according to WazirX.

“The people have spoken. We will work hard on rebuilding and creating value for everyone[.] 93.1% of voting creditors, representing 94.6% in value, have voted YES to the Scheme of Arrangement. This strong support marks an important milestone in the recovery process and reflects a shared belief in the proposed restructuring plan. To ensure full transparency, all votes have been independently verified by the appointed Independent Assessors,” posted CEO Nischal Shetty on X on April 7.