The Indian crypto community has been active ever since WazirX shared its restructuring plan after a cyber attack. If approved, this restructuring could revive the exchange, enabling users to access their funds again, trade like they used to, and possibly enjoy profit-sharing in the future.
What’s Happening with WazirX?
WazirX, a top cryptocurrency exchange in India, experienced a cyber attack that caused some disruptions. The platform has put forward a restructuring plan that needs user approval to recover and move ahead.
The Singapore courts have given WazirX a four-month pause until September 26, 2024, so they can come up with and carry out their plan. Users hold the important decision of voting on whether to move forward with the restructuring.
The Two Possible Outcomes
Users play an important part of deciding the future of WazirX. There are two different scenarios:
Two paths, two very different outcomes.
— WazirX: India Ka Bitcoin Exchange (@WazirXIndia) February 4, 2025
Here's a breakdown of what happens if the Scheme is approved versus if it isn't. Understand what to expect in both scenarios as we approach the voting process. pic.twitter.com/ZcXpC8g79Q
✅ If the Scheme is Approved (Users Vote YES)
If most users vote YES, the restructuring plan will proceed, and the following steps will happen:
- Liquid funds will be distributed right away to creditors and users when the platform restarts.
- Users will get back access to the exchange, allowing them to trade, withdraw, and use the platform like they did before.
- A new Decentralized Exchange (DEX) is coming to strengthen the ecosystem.
- We will set up profit-sharing systems so that users can gain from the platform’s future earnings.
- Efforts will be made to recover lost and stolen assets.
❌ If the Scheme is Rejected (Users Vote NO)
If users turn down the restructuring plan, things could get a lot worse:
- WazirX cannot restart operations right away.
- Creditors must wait for a settlement of ownership disputes before they can receive any funds.
- The repayment timeline is unclear and may take several years, possibly until 2030.
- If liquidation occurs, users will recover much less than they would under the restructuring plan.
- Most payouts will probably be in FIAT rather than crypto and at a substantially lower valuation.
- Users might lose out on possible profit-sharing benefits from the exchange’s comeback.
Why Users Should Consider Voting YES
By approving the restructuring plan, users will be able to access their funds more quickly, and WazirX can smoothly resume its operations. Liquidation leads to long delays, lower recoveries, and uncertainty.
If you have assets stuck on WazirX, voting YES might be the only way to start withdrawals, trading, and enjoy future profits.
Final Thoughts
WazirX users now have the power to decide. The restructuring plan offers a clear way to recover, while rejecting it could end in years of uncertainty and financial losses. If you have funds on the platform, it’s important to stay updated and make the right decision.
