After Restart and Payouts, WazirX Issues Recovery Tokens to Creditors

• WazirX has issued Recovery Tokens to eligible users.
• The tokens were issued within the 60-business-day restructuring timeline.
• Buybacks occur every 3 months if recoveries exceed the $10M threshold.

WazirX restarted operations on October 24, 2025, after a major hack in 2024 that wiped out $234.9 million in digital assets. The relaunch began with zero-fee trading for 30 days and a phased return of INR trading pairs, starting with USDT.

The restart marked the first step under the court-approved restructuring scheme. The priority was simple: to reopen the platform, restore basic trading, and begin user recovery.

First Distribution Covered Most Claims

Within 10 business days of reopening, WazirX completed its First Distribution. Eligible users received roughly 85% of their Approved Claims, valued at the reference pricing date defined under the Scheme.

This payout reduced immediate losses for most users and set the base for the next phase of recovery. The remaining portion of claims moved into a longer recovery process tied to asset recovery and future profits.

Recovery Tokens Now Issued

WazirX has now completed the next milestone. Recovery Tokens have been issued to all eligible users within the 60-business-day timeline promised earlier.

The tokens are allocated on a pro-rata basis. Each user’s allocation matches their share of total Approved Claims. There are no special cases and no preferences.

Recovery Tokens are visible on the Funds page in the app. They are not tradable at this stage. According to founder and chief executive Nischal Shetty, the next task at hand is to “work on revenue generation and profit creation for everyone.”

How Recovery Tokens Work

Recovery Tokens represent a claim on future buybacks by the company. Buybacks depend on profits and recovery of illiquid assets under recurring three-month evaluation periods.

At the end of each period, WazirX reviews recoveries. If at least $10 million in unencumbered value is realized, part of that amount is used to buy back Recovery Tokens. This becomes the next user distribution.

If recoveries fall below $10 million in a period, the value rolls over and accumulates until the threshold is met. RT trading may be introduced later, subject to legal approval. This would allow users to exit early by selling future recovery rights.

Custody Changes And Investigation Status

Following the hack, WazirX ended its relationship with its previous custody provider in August 2024. The exchange has since migrated custody operations to BitGo.

WazirX maintains that the attack did not target its core infrastructure or hot wallets. The breach occurred through an external website used for fund management.

Investigations remain ongoing. Management has stated that full clarity will take time and cooperation from all parties involved.

With trading restored, the first distribution completed, and Recovery Tokens issued, WazirX has executed the core steps of its restructuring plan on schedule.

Related: Indian Court Rules Crypto Is ‘Property,’ Blocks WazirX Plan to Use User’s XRP to Cover Hack Losses