WazirX Restructuring Plan Ensures Up To 100% USD Claims

In a recent presentation, creditors of the Indian crypto exchange could potentially recover up to 100% of their USD claims.

On Monday, September 16, WazirX, a popular Indian crypto exchange, held its second townhall meeting to address creditor queries following the $230 million hack in July. During the meeting, George Gwee, Director at Kroll Restructuring Administration LLC, explained how the affected users can get up to 100% USD claims. He also detailed the entire restructuring plan proposed in the moratorium filed in Singapore court.

During the meeting, creditors of the Indian crypto exchange were informed that they could potentially recover up to 100% of their USD claims, depending on a rise in crypto prices, an analysis by Kroll illustrated.

“We’re live ?Join in ? https://t.co/KAVOT8dZ5L”https://t.co/ZHMLMbBcvP

— WazirX: India Ka Bitcoin Exchange (@WazirXIndia) September 16, 2024

One case showed BTC rising from $60,000 to $100,000, a 66% increase, leading to a 92% USD recovery for creditors. Meanwhile, a 50% rise in ETH from $2,420 to $3,630 translates into an 83% USD recovery. These price upticks brought substantial benefits, especially for BTC holders, with up to 59% token recovery in BTC. Similarly, ETH holders could see a 71% token recovery.

A key part of this rebalancing process involved WazirX creditors choosing to receive distributions in either BTC or ETH. Initially, the value held in BTC accounted for only 20% of assets, while ETH comprised 80%. However, after rebalancing, the value held in BTC and ETH aligned with creditors’ choices, now holding 69% in BTC and 31% in ETH. This rebalancing ensured that the asset distribution matched the denomination choices of the creditors.

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Ultimately, regardless of the token denominations selected by creditors, they are guaranteed a 55% USD recovery at the point of rebalancing. Yet, the potential for a 100% recovery remains viable if the crypto market continues to appreciate in the coming months. This offers hope for creditors looking to recoup their losses albeit a few concerns, including taxation laws in India.