WazirX issues recovery tokens to users as operation resumes

WazirX has announced that it has issued recovery tokens to eligible users as its restructuring scheme continues. In its statement, the exchange mentioned that the recovery tokens were issued to all eligible users within the 60-day timeline that it promised earlier, allocating them on a pro-rata basis.

The exchange restarted its trading operation on October 24, 2025, after a massive hack in 2024. The hack saw more than $234.9 million stolen from the exchange, forcing it to shut down operations for the time being.

WazirX spent most of the year and last year picking up the pieces and trying to restart its operations. However, it restarted its operation with zero-fee trading for 30 days and phased return of INR trading pairs, choosing to start with USDT.

WazirX completes recovery tokens issuance

The restart of operations marked the first step taken by WazirX under the court-approved restricting scheme. The exchange was mandated to reopen its platform, begin basic trading, and kickstart user recovery.

According to the exchange, the first distribution was completed within the first 10 business days of reopening. Eligible users received about 85% of their approved claims, with the assets valued at the reference pricing date defined under the scheme.

The payout reduced 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 that was tied to asset recovery and future profits.

With this development, WazirX has now completed the next milestone. The tokens have been issued under the agreed timeline, and done in a way where the allocation matches the share of the total approved claims of each user. The exchange noted that there were no special cases and no preferences in its handling.

Recovery Tokens are visible on the Funds page in the WazirX application. According to the exchange, users cannot trade them at this stage. Nischal Shetty, founder and chief executive officer of WazirX, mentioned that the next step is for the exchange to work hard, generate enough revenue, and create profit for everyone.

Recovery Tokens represent a claim on future buybacks by the company. Buybacks will depend on profits and the recovery of illiquid assets in three months.

Plans to reimburse investors are underway

According to the exchange, WazirX will review recoveries at the end of each period. If at least $10 million in unencumbered value is realized, part of that amount will be focused on buying back Recovery Tokens. This will act as the next user distribution.

If the recoveries fall below the $10 million line in a period, the value rolls over and accumulates until the exchange meets the threshold. Recovery Token trading may be introduced later, but the exchange noted that it will remain subject to legal approval.

WazirX mentioned that if the court approves RT trading, it would allow users to exit early by selling future recovery rights.

In addition to the recovery, WazirX has announced that it has ended its relationship with its previous custody provider. The exchange finalized the termination in August 2024 and has since migrated custody operations to BitGo. WazirX maintains that the attack did not target its core infrastructure or hot wallets.

According to reports, the breach occurred through an external website used for fund management. While investigations remain ongoing, management has mentioned that full results will take time and cooperation from all parties involved.

Meanwhile, WazirX is currently on schedule with its restructuring plan as approved by the court. The company is looking forward to the future and hopes to speed up repayment as soon as possible.

If you're reading this, you’re already ahead. Stay there with our newsletter.