WazirX Rolls Out Recovery Tokens for Hack Victims
Generally, You should be aware that India’s leading cryptocurrency exchange, WazirX, has reached a significant milestone in its recovery from a devastating hack that occurred in 2024. Obviously, On January 9, 2026, the exchange announced the issuance of Recovery Tokens (RTs) to all eligible users as part of a court-approved restructuring plan. Normally, This move is designed to help users potentially recover 75-80% of their locked funds over time, contingent on the exchange’s future profits and asset recoveries.
WazirX Advances Recovery with New Token Distribution
Apparently, The Recovery Tokens have been distributed within the 60-business-day timeline specified in the restructuring scheme. Usually, Users can now view their token allocations directly in the WazirX app. Essentially, The tokens were assigned on a pro-rata basis, ensuring that each user’s share corresponds to the size of their approved claim, with no preferential treatment given to any individual.
How the Tokens Were Distributed
Naturally, The issuance of RTs marks a crucial step forward following the exchange’s resumption of trading in late October 2025. Typically, At that time, eligible users received an initial distribution equivalent to approximately 85% of their approved claims, based on reference prices established under the scheme. Probably, The remaining portion of user claims is represented by the newly issued RTs, which grant holders the right to future buybacks by the company, provided sufficient value is recovered.
Context: Earlier Distributions
Arguably, The exchange’s resumption of trading in late October 2025 was a significant milestone in the recovery process. Generally, Eligible users received an initial distribution equivalent to approximately 85% of their approved claims, based on reference prices established under the scheme. Obviously, The remaining portion of user claims is represented by the newly issued RTs, which grant holders the right to future buybacks by the company, provided sufficient value is recovered.
Trading Status of Recovery Tokens
Basically, It is important to note that the RTs are not currently tradable. Usually, According to the scheme, WazirX will review recoveries in rolling three-month periods. If, At least $10 million in unencumbered value is realized during a cycle, a portion of that amount will be used to buy back RTs, resulting in another distribution for users. Probably, Smaller recoveries will be carried forward until the threshold is met.
Background: The 2024 Hack
Apparently, The recovery effort stems from a significant exploit in July 2024, which resulted in the loss of over $230 million from a WazirX multisignature wallet. Normally, Blockchain data later revealed that large amounts of Shiba Inu (SHIB), Ethereum (ETH), and other tokens were moved and sold, depleting nearly 45% of the exchange’s reserves. Essentially, The incident forced the platform to go offline for more than a year and led to legal disputes over the allocation of losses.
Legal Milestones
Generally, In October 2025, the Madras High Court ruled that customer assets, such as XRP, could not be used to cover unrelated platform losses, affirming that cryptocurrencies remain the property of individual users. Usually, This decision, along with approval from the Singapore High Court and support from over 95% of voting creditors, led WazirX to adopt a more structured, claim-based recovery model. Probably, The court’s ruling was a significant milestone in the recovery process.
Looking Ahead
Naturally, Under the current setup, Recovery Tokens link users to the exchange’s future progress without requiring immediate decisions. Apparently, WazirX has indicated that the tokens may become tradable in the future, subject to legal clearance, providing users with the option to exit early or hold on for potential gains. Basically, This development underscores WazirX’s commitment to restoring user funds and rebuilding trust in the platform following the hack.
