WazirX Marks Key Milestone in Restructuring With Recovery Token Issuance

Source: Coindoo Original Title: WazirX Marks Key Milestone in Restructuring With Recovery Token Issuance Original Link: WazirX has reached another checkpoint in its court-approved recovery process, confirming that recovery tokens have now been distributed to all eligible users within the timeline previously outlined.

The issuance follows WazirX’s gradual return after the 2024 security breach that drained roughly $234.9 million from the platform and forced a prolonged shutdown. Trading officially resumed on October 24, 2025, beginning with a temporary zero-fee period and a phased reintroduction of INR trading pairs, starting with USDT.

Key takeaways:

• Recovery tokens have been issued to all eligible users within the promised 60-day window
• Distribution was done strictly on a pro-rata basis, with no preferential treatment
• Trading resumed in October 2025 after a $234.9 million hack in 2024
• The token issuance represents the next phase of the court-approved restructuring plan

Recovery Process Moves Into the Next Phase

Reopening the exchange was only the first requirement under the restructuring plan. Shortly after trading resumed, WazirX carried out its initial distribution, completing it within ten business days. Most affected users received close to 85% of their approved claims, calculated using the reference prices set by the court. That payout eased immediate losses and laid the groundwork for longer-term recovery.

The newly issued recovery tokens represent the remaining portion of those claims. Distribution was done strictly on a proportional basis, meaning each user’s allocation reflects their share of total approved claims. The exchange said no exceptions or preferential treatment were applied.

Users can now see their recovery tokens in the Funds section of the WazirX app, though the tokens are currently non-tradable. According to founder and chief executive Nischal Shetty, the focus now shifts toward rebuilding revenue and profitability so that future repayments can be accelerated.

How the Recovery Tokens Are Expected to Work

Recovery tokens are tied to future buybacks rather than immediate payouts. Every three months, WazirX will assess recovered assets and operating profits. If at least $10 million in unencumbered value is realized during a review period, part of that amount will be used to buy back recovery tokens, triggering the next round of distributions to users.

If the threshold is not met in a given period, the recovered value carries over and continues to accumulate until it does. The exchange has also left open the possibility of allowing recovery token trading at a later stage, but only if courts grant approval. Such a move would give users the option to exit early by selling their future recovery claims.

Custody Changes and Ongoing Investigation

Alongside the financial recovery steps, WazirX has restructured its custody arrangements. The exchange ended its relationship with its previous custody provider in August 2024 and has since transferred custody operations to BitGo. Management has reiterated that the hack did not compromise its core systems or hot wallets, stating that the breach stemmed from an external fund-management interface.

Investigations into the incident are still underway, with WazirX noting that a full accounting will require continued cooperation among multiple parties.

With trading restored, initial claims largely repaid, and recovery tokens now issued, WazirX says it remains on track with the restructuring plan approved by the court. The exchange’s next challenge will be converting operational recovery into sustained profitability, with the aim of speeding up repayments to users over time.