Outside Source
WazirX warns creditors that repayments could be delayed until 2030 if they reject its restructuring plan, which was recently approved by the Singapore High Court.
News
Indian cryptocurrency exchange WazirX has warned that repayments from its $235 million hack could be delayed until 2030 if creditors do not approve its proposed restructuring plan.
On Feb. 4, WazirX posted an image showing two different outcomes for creditors affected by the hack. If the restructuring plan is approved, the company said it could begin the process as early as April 2025, relaunch its platform, and distribute the first round of repayments.
The company said it would also launch a new decentralized exchange (DEX) business and repay creditors through profit sharing and recovering stolen assets.
However, if the repayment scheme is rejected, the company warned that creditors might need to wait for up to five more years before finally getting their assets back.
Cointelegraph approached WazirX for comments.
WazirX says creditors could face repayment delays if they vote against the restructuring scheme. Source: WazirX
WazirX says rejecting the scheme may delay repayments to 2030
If the restructuring plan is not approved, WazirX said creditors might need to endure “unclear and potentially extended timelines.”
The exchange said that creditors would need to wait for their ownership dispute to be resolved before creditors could be repaid.
In addition, the exchange warned users that if liquidation occurs before the ownership dispute is resolved, the asset repayment will be delayed, in fiat and of lower value because of liquidation costs.
“As fiat is distributed, market price driven upside following distributions is unlikely,” WazirX wrote.
WazirX also claimed that users could miss “near-term bull runs” because of the unclear and extended timelines.
Related: Crypto hacks, scam losses reach $29M in December, lowest in 2024
This article first appeared at Cointelegraph.com News
