The post WazirX creditors to decide on recovery plan or risk lengthy liquidation appeared on BitcoinEthereumNews.com.

WazirX creditors will decide in the coming weeks whether to begin receiving compensation for their lost crypto as early as April 2025 or face a prolonged recovery process that could extend to 2030. The vote follows a Singapore High Court ruling allowing the embattled Indian exchange to pursue a restructuring plan rather than face liquidation. The decision hinges on whether three-quarters of creditors approve the recovery scheme. If the threshold is met, WazirX will roll out a phased compensation plan, including launching a decentralized exchange (DEX), issuing recovery tokens, and implementing periodic buybacks to reimburse affected users. If the vote fails, the platform will be forced into liquidation, a process the company has warned could take years with diminished returns for creditors. Divisive Proposal WazirX’s proposed recovery plan has sparked controversy despite the company’s claims that creditors could recover up to 80% of their balances through its new DEX and recovery token model. Many users remain skeptical, with some critics arguing that the five-year delay is a strategic maneuver to coerce creditors into accepting the new platform rather than a genuine recovery effort. Others have directed their frustration at WazirX co-founder Nischal Shetty, 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 recovery 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 whether it…

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Filed under: News - @ February 4, 2025 11:24 pm