TLDR
- WazirX has resolved its restructuring process in Singapore and is moving forward with its revival plan.
- The exchange will hold a final vote to confirm structural changes needed for the fund distribution process.
- Zanmai India, registered with India’s Financial Intelligence Unit, will handle the distribution of user funds.
- WazirX received 91 percent approval in the initial creditor vote supporting its recovery plan.
- The exchange plans to restart operations and implement a Proof-of-Reserve system to build user trust.
WazirX has taken a major step toward recovery after a cyberattack that froze its operations and affected user funds. The exchange has finalized its restructuring plan in Singapore and is now preparing for a final creditor revote. This move will confirm structural changes and allow the distribution of funds to begin shortly.
The exchange suffered a $235 million hack but has since made steady progress toward restoring platform functionality. During the initial vote, creditors approved the plan 91%, securing broad support. The upcoming vote will now ratify a key shift in the plan without altering user outcomes.
WazirX has committed to managing the fund distribution through Zanmai India, a registered entity under the Financial Intelligence Unit of India. This decision removes the need to transfer operations to another offshore entity. The move is expected to simplify legal compliance and expedite the next steps in the recovery.
Fund Distribution Through Zanmai India to Begin Soon
Zanmai India will oversee the distribution of user funds, ensuring that the process remains under domestic regulatory oversight. WazirX intends to begin distribution within weeks after the final vote is completed and approved. This step marks the start of direct user engagement and restores partial platform functionality.
WazirX confirmed that only minor structural changes required a second round of voting from stakeholders. The revote date will be announced soon and is expected to be a formality due to existing majority support. The process aims to maintain transparency and prevent delays in the release of assets.
The company has modeled its recovery after Bitfinex, which successfully resumed operations after a major security breach in 2016. Unlike Bybit, which covered losses using internal reserves, WazirX lacked such capacity during the attack. However, it now holds a clear plan and strategy backed by revised financial structures.
WazirX Plans Restart Despite Legal and Market Pressures
Court documents confirm that WazirX faces a 45% shortfall between its liabilities and available assets, requiring a phased recovery. Restarting operations remains the most viable option for creditors to regain their funds eventually. The platform’s leadership considers this revote the last administrative hurdle before resuming exchange activities.
WazirX will also implement a Proof-of-Reserve (PoR) system post-restart to rebuild user trust and operational integrity. This will provide transparency in asset holdings and strengthen market confidence over time. The plan aligns with broader efforts to match global standards in exchange security and fund accountability.
Meanwhile, WazirX continues to face legal disputes, including a lawsuit from a group of creditors in Singapore. Despite these issues, the management remains focused on the final vote and timely fund recovery.
