Exchange to Distribute Crypto and Recovery Tokens After $240M Hack
Indian crypto exchange WazirX is preparing to restart operations within the next 10 business days, following formal approval of its court-sanctioned restructuring plan filed with Singapore’s Accounting and Corporate Regulatory Authority (ACRA) on October 15.
This marks the final stage of WazirX’s revival process, more than a year after the platform suffered a devastating $240 million hack that led to bankruptcy and a complete trading halt.
According to the company’s statement on X, over 95% of creditors supported the restructuring plan, which was sanctioned by the High Court of Singapore earlier this month — paving the way for the exchange to resume operations under a new structure.
Implementation Phase Begins: Users to Receive Recovery Tokens (RTs)
With the ACRA filing complete, WazirX has entered the implementation phase, during which users will begin receiving crypto distributions and newly issued Recovery Tokens (RTs).
These tokens will be allocated on a pro-rata basis, depending on the size of each approved claim, and will entitle holders to a share of WazirX’s future revenue, recovered stolen assets, and future profits.
“We’re now focused on executing the recovery plan and ensuring affected users are compensated under the scheme,” a company representative said in a recent statement.
The Recovery Tokens are part of a unique compensation structure designed to keep users engaged in the exchange’s long-term success while providing partial restitution for the lost assets.
From Collapse to Revival: A Year in Recovery
WazirX was once India’s largest crypto exchange by trading volume, before the July 18, 2024 hack forced it into bankruptcy. The attackers drained the platform of major tokens, laundering the proceeds through Tornado Cash, severely complicating the recovery process.
The exchange’s parent company, based in Singapore, opted for a cross-border restructuring under that jurisdiction to navigate creditor claims and regulatory challenges.
Despite limited success in retrieving the stolen funds, WazirX has continued to rebuild trust with creditors and users, working closely with regulators to ensure a compliant, transparent relaunch.
Analysts See WazirX Revival as Key Test for India’s Crypto Industry
The upcoming relaunch is being viewed as a litmus test for India’s digital asset market, where regulatory uncertainty and cybersecurity risks have long deterred investor confidence.
Crypto market analyst Rohit Khanna noted:
“If WazirX manages to execute its recovery plan smoothly, it could set a precedent for how exchanges handle insolvency and user restitution in the future. The use of Recovery Tokens, in particular, is an innovative step toward restoring credibility.”
With WazirX’s restart imminent, the exchange aims to reclaim its position in India’s digital finance ecosystem, while demonstrating how structured recovery mechanisms and judicial oversight can bring stability to the volatile crypto sector.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.