WazirX Set to Relaunch in 10 Days — Users to Receive Crypto & Recovery Tokens
In a landmark move for India’s crypto ecosystem, WazirX, one of the country’s leading cryptocurrency exchanges, is set to restart operations within 10 business days following a Singapore High Court–approved restructuring plan.
The decision, sanctioned on October 13, 2025, and made legally effective on October 15, marks the end of a 15-month recovery effort by its Singapore-based parent company, Zettai Pte. Ltd., after the devastating July 2024 cyberattack that wiped out nearly $230 million in digital assets.
The restart not only restores trading and withdrawals but also initiates a two-tier compensation model, including the much-talked-about WazirX Recovery Tokens (RTs) — a first-of-its-kind mechanism in the Indian crypto market.
Background: The 2024 Cyberattack That Changed Everything
On July 18, 2024, WazirX suffered one of the largest crypto exchange hacks in Asia, with attackers exploiting a multi-signature wallet vulnerability. Nearly half of the platform’s holdings, worth around $230–235 million, were stolen.
Investigations linked the breach to North Korea’s Lazarus Group, known for major crypto heists. The hack forced WazirX to suspend operations, freezing user funds and sparking widespread panic in the Indian crypto community.
Initially, WazirX proposed a “socialized loss plan,” asking users to absorb part of the loss — a move met with strong backlash. As trust eroded, the company shifted gears toward a court-supervised Scheme of Arrangement (SOA) in Singapore, offering a transparent, legally structured recovery route.
Key Highlights: WazirX’s Restructuring and Recovery Plan
Here’s a breakdown of the critical updates from the WazirX restructuring process:
-
Singapore High Court Approval:
The Scheme of Arrangement (SOA) was officially sanctioned on October 13, 2025, and filed with the Accounting and Corporate Regulatory Authority (ACRA) on October 15, making it legally effective. -
Creditors’ Support:
In an August 2025 revote, over 95% of creditors (by number and claim value) backed the amended plan, signaling strong confidence in the recovery roadmap. -
Platform Relaunch:
WazirX will resume trading, deposits, and withdrawals within 10 business days of October 15 — placing the relaunch in late October 2025. -
Compensation Model:
Users will receive 52% of their approved claim value immediately in crypto or liquid assets, while the remaining 23–28% will be distributed through Recovery Tokens (RTs). -
Security Overhaul:
WazirX has onboarded BitGo and Zodia Custody to safeguard assets with institutional-grade security, replacing its compromised multisig setup. -
Post-Hack Deposits:
All deposits made after the July 2024 hack will be refunded 100% in original tokens, restoring trust for returning users.
Understanding the Recovery Tokens (RTs): The Core of WazirX’s Revival
The introduction of Recovery Tokens (RTs) is the most innovative — and controversial — element of the restructuring plan.
What Are Recovery Tokens?
Recovery Tokens are digital instruments issued to affected users, representing their claim on WazirX’s future profits and recovered assets. Each creditor receives RTs proportionate to their approved claim, giving everyone an equitable stake in potential future recoveries.
How the Buyback Works
WazirX plans to conduct quarterly buybacks of Recovery Tokens over the next 2–3 years (2026–2028). However, there’s a catch:
-
The buyback only happens if WazirX generates at least USD $10 million in net recoveries or profits during a given quarter.
-
If this threshold isn’t met, the amount rolls over to the next quarter.
In simple terms — no profits, no buyback. This means RTs have no guaranteed value and depend entirely on WazirX’s ability to recover stolen funds and run a profitable exchange.
Tradability and Future Liquidity
Zettai may enable secondary trading of Recovery Tokens once regulatory approvals are secured. This could let users sell their RTs early instead of waiting years for potential buybacks.
Impact & Analysis: What This Means for Users and the Crypto Market
For Users
The 52% upfront payout provides immediate relief for millions of users who have been locked out of their funds since 2024. However, the remaining recovery tied to RTs is speculative and dependent on WazirX’s future performance.
Users should view Recovery Tokens as high-risk, deferred claims — more like equity in the exchange’s success than guaranteed reimbursements.
For the Crypto Industry
WazirX’s swift resolution — from hack to first payout in just 15 months — stands in stark contrast to long-drawn cases like Mt. Gox (11 years) and FTX (still pending).
The case also establishes Singapore’s legal framework as a model for crypto insolvency resolution, showcasing how corporate recovery can be achieved faster and with structured transparency.
For Market Confidence
If WazirX successfully relaunches and regains market share, it could become a blueprint for post-hack recovery in the crypto industry. However, sustained profitability and user trust are critical for RTs to hold any real value.
Comparative Overview: WazirX vs. Other Crypto Collapses
| Exchange | Year of Incident | Recovery Method | Time to First Payout | Target Recovery | Funding Mechanism |
|---|---|---|---|---|---|
| WazirX | 2024 | Singapore SOA + Recovery Tokens | ~15 months | 75–80% (speculative) | Future profits & asset recovery |
| FTX | 2022 | U.S. Chapter 11 Liquidation | Pending (2+ years) | Uncertain | Liquidation estate |
| Mt. Gox | 2014 | Civil Rehabilitation | 11+ years | Uncertain | Trustee-managed recovery |
WazirX’s model focuses on speed and liquidity, prioritizing partial recoveries over long legal delays.
Public & Market Reactions
The crypto community’s response has been mixed:
-
Supporters praise the quick turnaround and court-backed transparency, viewing it as a precedent for responsible exchange management.
-
Skeptics call the Recovery Tokens a gamble, doubting whether WazirX can generate enough profits to sustain buybacks.
Industry experts, however, agree that this “speed over certainty” approach could become a new template for crisis management in the digital asset sector.
FAQs: Everything You Need to Know
1. What is the WazirX restart about?
WazirX is relaunching after a Singapore High Court–approved restructuring following its 2024 hack. Trading and withdrawals will resume by late October 2025.
2. How will users get their funds back?
Users will receive about 52% of their approved claims in crypto soon after restart and the rest via Recovery Tokens over the next 2–3 years.
3. What are WazirX Recovery Tokens (RTs)?
RTs are special tokens representing users’ claims on WazirX’s future profits and recovered assets. Their value depends on the exchange’s profitability.
4. When will the buybacks start?
Quarterly buybacks will begin in 2026, but only if WazirX earns at least $10 million per quarter in net recoveries.
5. Are RTs guaranteed to have value?
No. They’re contingent on future performance, so their value could fluctuate — or remain zero if targets aren’t met.
6. Is the compensation taxable?
Yes. Under Indian law, crypto recoveries are treated as Virtual Digital Assets (VDAs) and taxed at 30%, with no loss offsets allowed.
Conclusion: A Bold Comeback or a Risky Gamble?
The WazirX restart marks a historic milestone — both for India’s crypto industry and for global restructuring precedents. The Singapore High Court’s approval, user payouts, and Recovery Token innovation demonstrate an ambitious attempt to restore confidence after one of the biggest crypto hacks in Asia.
Still, the plan’s success rests on one thing: WazirX’s ability to rebuild, regain profits, and maintain trust. For users, the message is clear — while the first 52% offers real liquidity, the rest of the recovery remains a calculated risk tied to the platform’s performance.
As the exchange reopens its doors this October, all eyes are on whether WazirX can turn this legal triumph into a sustainable comeback story.
