WazirX Progresses in Recovery Following Hack with Launch of Recovery Tokens
WazirX initiates recovery for users affected by a major hack through the introduction of Recovery Tokens under a court-sanctioned restructuring effort.
WazirX Progresses in Recovery Following Hack with Launch of Recovery Tokens
India’s largest cryptocurrency exchange, WazirX, is taking significant steps towards recovery after a major hack in July 2024. On January 9, 2026, the exchange confirmed that Recovery Tokens have been issued to eligible users as part of a court-approved restructuring plan.
The issuance of these tokens is a crucial development, allowing users to potentially recover between 75% and 80% of their locked funds over time, reliant on future profits and asset recovery efforts.
Recovery Tokens Issued as Restructuring Plan Moves Forward
In a recent post on X, WazirX announced the distribution of these Recovery Tokens (RTs) that occurred within 60 business days as defined in the restructuring scheme. According to WazirX, users can now see their token allocations reflected in the Funds tab of their app.
The tokens are distributed on a pro-rata basis, ensuring that each user’s allocation corresponds to the size of their verified claim without preferential treatment. This step is highlighted as a key milestone following the platform’s relaunch in late October of the previous year.
When trading resumed, eligible users received a First Distribution accounting for about 85% of their recognized claims based on referenced prices established in the plan. The new RTs will represent the remaining claims and confer future buyback rights by WazirX, contingent upon sufficient asset recovery.
It’s important to note that RTs are not currently tradable. WazirX plans to review recovery progresses in quarterly phases, and if more than $10 million in unobstructed value is realized in a cycle, part of this sum may be utilized to buy back RTs, subsequently distributing them back to users. Smaller recovery amounts will be carried over until reaching the specified threshold.
How the Hack and Court Rulings Shaped the Recovery Path
The recovery strategy originates from the July 2024 breach that led to over $230 million being drained from a multisignature wallet at WazirX. Subsequent blockchain investigations indicated that significant quantities of Shiba Inu (SHIB), Ethereum (ETH), and other cryptocurrencies were sold off, resulting in the erasure of nearly 45% of the platform’s reserves. This incident resulted in the platform being offline for more than a year and sparked legal disputes regarding the allocation of losses.
In October 2025, the Madras High Court ruled against WazirX’s initial proposal to distribute losses broadly among users, establishing that customer assets, including XRP, cannot be utilized to counter unrelated platform losses, thereby affirming ownership rights of individual users over their cryptocurrencies. This judgment, combined with the Singapore High Court’s endorsement and the backing of over 95% of voting creditors, has propelled WazirX towards a more systematic recovery framework.
The current strategy with Recovery Tokens allows users to be connected to ongoing recovery efforts without the need for immediate decision-making. WazirX has indicated that these tokens could later become tradable, pending legal okays, offering users flexibility between an early exit or continued investment for potential future growth.
