Recovering from the Unrecoverable: How Kroll Restructured $535 Million in Crypto Debt After a Nation-State Hack
Discover how Kroll delivered a first-of-its-kind Singapore Scheme of Arrangement for a cryptocurrency exchange targeted by a nation-state backed hacker, achieving 85% recoveries for 4.3 million retail creditors and relaunching a platform that would otherwise have been liquidated.
The Challenge
In July 2024, WazirX, one of India’s largest cryptocurrency exchanges, suffered a catastrophic cyberattack. Hackers breached its cold wallet and stole $234 million in user token deposits, a theft immediately visible on the blockchain to each of WazirX’s 4.3 million users. The deficit between remaining assets and liabilities was too large to refinance or bridge through external lending. Without a credible restructuring, liquidation was the only outcome.
The complexity was formidable. WazirX’s cryptocurrency operating entity, Zettai Pte Ltd, was incorporated in Singapore, while its operations and user base were overwhelmingly based in India. A disputed ownership process involving Binance was running in parallel. Indian enforcement authorities were pursuing legal action against the exchange’s fiat entity. And Singapore’s cryptocurrency regulatory framework was shifting in real time. WazirX engaged Kroll to chart a path forward.
Kroll's Solution
Kroll conceptualised and delivered a Singapore Scheme of Arrangement for Zettai, a mechanism never previously applied to a cryptocurrency exchange of this scale. The proposal was developed through open consultation with the creditor base and put to a formal vote through a claim and voting platform built by Kroll Issuer Services, integrated directly into the WazirX app to support participation across millions of retail creditors.
Underpinning the financial structure was Kroll’s blockchain forensics capability, which traced the stolen assets and developed a recovery strategy for the benefit of Scheme creditors. The Scheme set aside $30 million cost reserve to fund forensic recovery and operational costs to reactivate the platform. Kroll also managed a complex rebalancing exercise across more than 300 token denominations, ensuring creditors received proportionate distributions in their actual tokens while preserving the full range of supported currencies on the platform. Overall project management across financial modelling, legal proceedings, stakeholder communications, forensic tracing and Scheme execution was led by Kroll.
The Impact
Creditors received 85% recoveries in their token denominations, compared with the materially lower recovery that liquidation would have produced. A $30 million cost reserve funds ongoing forensic pursuit of the stolen assets and reactivation of the platform. The Scheme has proven effective in addressing Indian legal actions without requiring cross-border recognition proceedings.
WazirX has been relaunched at full capacity, with its complete suite of supported tokens reinstated. Throughout the process, 4.3 million retail creditors were consulted and given a direct vote on the outcome, helping preserve trust in both the restructuring process and the platform itself. The platform’s second chapter is now underway.
Facing a Cryptocurrency Complexity?
Whether you are managing cyber security issues, liquidity pressure, a distressed balance sheet or a large and dispersed creditor base, Kroll can help you find a path forward. Talk to our experts today so you stay ahead of a complex challenge.
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