Cryptocurrency exchange WazirX has completed the allocation of its Recovery Tokens to all eligible users, marking a key milestone in the court-approved restructuring scheme put in place after the platform’s 2024 hack and subsequent shutdown.
The tokens have been issued within the 60-business-day timeline set out in the scheme of arrangement and are now visible to users in the Funds section of the WazirX app.
Allocation Completed for All Eligible Creditors
WazirX confirmed that Recovery Tokens (RTs) have been allocated to all scheme creditors who held approved claims on the platform, in line with the restructuring terms sanctioned by the High Court of Singapore in October 2025. The scheme was proposed by WazirX parent company Zettai Pte Ltd and was backed by a large majority of creditors, with 95.7% of voting creditors, representing 94.6% in value, supporting the revised proposal in August 2025.
The allocation follows a pro-rata methodology: each eligible user receives RTs in proportion to the size of their approved claim relative to the total pool of approved claims, with no preferential treatment or manual overrides. WazirX has stated that this structure is intended to ensure fair and consistent treatment of all affected users under the scheme.
Part of a Broader Post-Hack Recovery Plan
The Recovery Token allocation is the latest step in a broader restructuring process that began after WazirX suffered a major cyberattack in July 2024, which resulted in losses of nearly Rs 2,000 crore (approximately USD 234 million) in user assets. Following the incident, the exchange halted operations and pursued a court-supervised restructuring to compensate users over time.
Operations were restarted on 24 October 2025, initially with zero-fee trading for 30 days and a phased reintroduction of INR trading pairs, starting with USDT. Within 10 business days of the restart, WazirX completed what it termed the First Distribution, returning roughly 85% of eligible users’ approved claims, based on reference pricing defined in the scheme. This distribution was intended to reduce immediate losses while moving the remaining portion of claims into a longer-term recovery framework tied to future asset recoveries and profits.
In parallel, WazirX entered into a partnership with BitGo, a US-based cryptocurrency custodian, to strengthen asset security and reduce the risk of similar incidents in the future.
How Recovery Tokens Work
Recovery Tokens represent users’ entitlement to participate in future recoveries made by the platform over time, including proceeds from illiquid asset recoveries and profits, as outlined in the restructuring scheme. RTs are not currently tradable and function primarily as a mechanism to track and distribute additional value recovered after the initial payout.
Under the scheme, WazirX will review recoveries in recurring three-month evaluation periods. For any period in which at least USD 10 million in unencumbered value is realized, a portion of that amount is allocated to buy back Recovery Tokens from holders, forming the next distribution to users. If recoveries in a given period fall below the USD 10 million threshold, the value is not forfeited; instead, it rolls over and is combined with future recoveries until the threshold is met and a new distribution can be executed.
According to the scheme details published by WazirX, a total of 1 billion Recovery Tokens will be distributed among creditors, with individual allocations calculated on the basis of each creditor’s share of the total approved claims. This capitalization is intended to align RT supply directly with the outstanding claim base.
User Access and Current Status
Eligible users can now view their RT balances directly on the Funds page of the WazirX app. The exchange has emphasized that RTs at this stage are solely an on-platform representation of users’ rights under the scheme and do not function as a freely tradable market token.
Platform trading has resumed, most of the initial compensation has been distributed through the First Distribution, and the Recovery Token allocation is now in place, meaning the core steps of the restructuring plan have been executed within the specified timelines. Investigations into the 2024 hack and related recoveries remain ongoing.
What Happens Next
The process now moves into the cyclical recovery and distribution phase, during which WazirX will conduct three-monthly reviews of asset recoveries and profits to determine whether conditions are met for RT buybacks and further user distributions. Any realized value below the USD 10 million threshold in a given period will accumulate into subsequent cycles until a distribution becomes viable.
WazirX has indicated that, subject to legal and regulatory approvals, Recovery Tokens may become tradable in the future, potentially enabling users to sell their entitlement to future recoveries or for others to acquire additional exposure to the recovery process. No specific timeline has been formally confirmed for such trading to commence, and RTs remain non-tradable at present.
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