WazirX resumed operations on October 24, 2025, after a major hack in 2024 resulted in the loss of $234.9 million in digital assets. The resumption began with 30 days of commission-free trading and a gradual return of INR trading pairs starting with USDT.
The restart was the first step under a court-approved restructuring plan. Our priorities were simple. The goal is to restart the platform, restore basic trading, and begin recovering users.
First distribution covers most claims
Within 10 business days of reopening, WazirX completed its first distribution. Eligible users received approximately 85% of their approved claims valued at the reference price date defined in the scheme.
This payment mitigated immediate losses for most users and set the foundation for the next stage of recovery. The remainder of the claim has been moved to a longer recovery process related to asset recovery and future benefits.
Recovery token has been issued
WazirX has completed the following milestones: Recovery tokens were issued to all eligible users within the previously promised 60 business days.
Tokens will be allocated on a pro-rata basis. Each user’s quota matches their percentage of the total number of approved claims. There are no special cases or preferences.
The recovery token will be displayed on the (Funds) page of the app. Cannot be traded at this time. Founder and CEO Nischal Shetty said the next immediate challenge is to “work on revenue generation and profit generation for everyone.”
Recovery Token (RT) distribution is now complete. You will be able to view it in the Funds page.
Now to work on revenue generation and profit creation for everyone 💪 https://t.co/umFtw47vPj
— Nischal (Shardeum) 🔼 (@NischalShetty) January 9, 2026
How recovery tokens work
Recovery tokens represent claims for future buybacks by the company. Share buybacks are dependent on the recovery of profits and illiquid assets over a periodic three-month valuation period.
At the end of each period, WazirX reviews the collection status. If an unencumbered value of at least $10 million is realized, a portion of that amount will be used to buy back recovery tokens. This results in the following user distribution:
If collections fall below $10 million during a period, the value is rolled over and accumulated until a threshold is reached. RT trading may be introduced in the future, subject to legal approval. This allows users to terminate early by selling future reinstatement rights.
Change of custody and investigation status
Following the hack, WazirX ended its relationship with its previous custody provider in August 2024. Since then, the exchange has moved its custody operations to BitGo.
WazirX claims that the attack did not target its core infrastructure or hot wallets. The breach occurred through an external website used to manage funds.
The investigation is still ongoing. Management says full clarity will take time and cooperation from all involved.
With trading restored, initial distribution completed, and recovery tokens issued, WazirX has executed the core steps of its turnaround plan as scheduled.
Related: Indian court rules cryptocurrency is ‘property’, blocking WazirX plan to use users’ XRP to cover hacking losses
Disclaimer: The information contained in this article is for informational and educational purposes only. This article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the use of the content, products, or services mentioned. We encourage our readers to do their due diligence before taking any action related to our company.
