WazirX Finalizes Recovery Token Allocation, Distributes 85% of Rebalanced Assets to Users in 10 Days
WazirX has taken a big step in returning funds to its users after a long and difficult period. On January 9, 2026, the crypto exchange announced that it had completed the allocation of Recovery Tokens to all eligible users and delivered about 85% of rebalanced assets within 10 business days of its platform restart.
This move follows the court-approved scheme of arrangement and the exchange’s relaunch on October 24, 2025.
Many users had been waiting months for clarity after a major hack in July 2024 froze withdrawals and left balances in limbo. The recent distribution marks a key turning point in that recovery journey.
Let’s discuss what happened, why this payout matters, and what it could mean for the future of WazirX and its users.
WazirX: Hack, Asset Freeze, and User Loss
In July 2024, WazirX fell victim to one of the most severe security breaches in Indian crypto history. Hackers stole more than $230 million worth of user assets from the exchange’s wallet. This event forced WazirX to halt all withdrawals and trading while it scrambled to secure remaining funds and plan a path to recovery.
Users were left frustrated and uncertain. Many saw their account balances stuck with no clear timeline for resolution. WazirX’s reputation suffered as traders questioned whether the platform could ever repay its customers. Converting tokens back to fiat or moving assets off the exchange was impossible for months. This freeze amplified fears and anxiety among crypto holders who had entrusted their funds to the platform.
This type of breach can damage confidence in the broader crypto market. When a major exchange loses significant funds, other traders and investors watch closely and reconsider risk. WazirX needed a plan that would not only return funds but also rebuild trust. That plan took shape through a court‑approved restructuring vehicle in Singapore.
What Is the “Recovery Token” Scheme of WazirX?
To address the massive shortfall, WazirX and its parent company, Zettai Pte Ltd., proposed a Scheme of Arrangement under the Singapore High Court’s supervision. The core idea was to split recovery into two parts: immediate return of liquid assets and longer‑term claims represented as Recovery Tokens (RTs).
RTs are digital tokens given to users in proportion to their claims. These claims were calculated based on each user’s portfolio value just before the July 18, 2024, hack. In simple terms, if someone’s claim represented 1% of all creditor claims, they would receive 1% of the total RTs issued.
The first distribution represented about 85 % of rebalanced net liquid platform assets. These are assets that WazirX could immediately allocate after rebalancing the portfolio and securing the exchange’s liquid reserves. The remaining portion of user claims roughly 15 % is tied to RTs, which are backed by future recoveries, profits from platform operations, and recoveries from stolen assets.
Under this structure, RTs allow users to share in additional value as the platform generates revenue and recovers illiquid assets over time. This mechanism is intended to be fair and gives users a chance to recover more than the initial return of liquid assets.
How WazirX Delivered 85 % to Users Within 10 Days?
Once the Singapore High Court granted its sanction and the scheme became effective, WazirX worked quickly to meet the timeline. After the platform’s relaunch on October 24, 2025, the exchange had 10 business days to complete the initial distribution of rebalanced assets in the form of RT allocations. By January 9, 2026, the company announced that it had successfully met this deadline and allocated about 85 % of rebalanced net liquid platform assets to all eligible users.
Eligible users can now see their RT balances directly in the WazirX app. These tokens represent their proportional share of both the distributed assets and claims on future recoveries. The rapid completion of this phase shows how structured legal frameworks and careful planning can accelerate payouts even after significant operational disruptions.
Under the scheme, periodic evaluations of asset recoveries occur every three months. If more than USD 10 million in recoveries is recorded in a period, a portion goes toward buying back RTs. If not, recoveries roll into the next cycle. This approach ensures that users can benefit over time as additional funds are realized.
WazirX: User Experience & Market Realities
Recovery is not just about getting tokens back. Many users saw the value of their original portfolios change between July 2024 and the actual distribution. Because distributions are made using the rebalanced portfolio at current market prices, the exact amounts of each token can differ from what users held before the hack. This has led to varied reactions from the community.
Some traders are happy to get most of their holdings back. Others find the rebalancing math confusing. Token amounts can be lower than expected. Prices changed between rebalancing and distribution. This creates a gap between token count and portfolio value.
There is also a broader emotional element. After nearly 18 months of uncertainty, many users are relieved to see real progress. Others remain cautious, seeking clearer updates on how remaining recoveries will unfold and how RTs might become tradable in the future.
Broader Industry & Regulatory Implications
WazirX’s path shows how legal systems and crypto platforms can work together when a crisis strikes. The Singapore High Court’s oversight of the scheme built a framework for orderly recovery that prioritizes fairness and transparency. This could set a precedent for other exchanges facing similar issues.
Doing this under judicial supervision also provides a template for regulators and investors on how to treat digital assets in distressed scenarios. It highlights the importance of clear legal structures in an industry where technology often evolves faster than regulation.
Trust is essential in crypto. Recoveries like this help restore confidence not just for WazirX users, but for the broader trading community that watches these events closely.
What’s Next: Outlook for Users & WazirX
WazirX still has more work ahead. Users hold RTs that reflect future claims on recovered assets and platform profits. Over the next several years, the platform will aim to realize these recoveries and execute periodic buybacks as outlined in the scheme.
The possible tradability of RTs depends on legal and regulatory developments. If RTs become tradable, holders could see additional flexibility and opportunities in secondary markets. The pace of these developments will influence how users experience ongoing value realization.
Security remains a critical priority. WazirX has partnered with custody providers to strengthen its infrastructure and prevent future breaches. Continued improvements in security and transparency will be key to rebuilding long‑term user trust.
Final Words
WazirX’s distribution of 85 % of rebalanced net liquid platform assets within 10 business days marks an important milestone after a long period of uncertainty. The approach blends legal oversight with structured recovery mechanisms designed to balance immediate returns and future value.
As the crypto world watches, this could become a model for how exchanges address large‑scale losses while protecting users and strengthening the foundations of decentralized finance.
Frequently Asked Questions (FAQs)
Recovery Tokens are digital tokens given to WazirX users to claim back lost assets after the July 2024 hack. They represent users’ share of recovered funds and future recoveries.
The remaining Recovery Tokens will be distributed based on future recoveries and platform profits. WazirX plans periodic evaluations and buybacks over the next few years. Update confirmed January 9, 2026.
Some users received less because payouts are based on rebalanced asset values, not original holdings. Prices of tokens have changed since July 2024, affecting the quantity of tokens returned.
Disclaimer
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.
