WazirX Plans to Launch Recovery Tokens to Compensate Users Affected by $235M Hack

WazirX, the leading cryptocurrency exchange in India, has announced plans to resume operations and compensate users following a significant $235 million security breach

Leading Indian cryptocurrency exchange WazirX, which was hacked for a total of $235 million in 2024, has announced plans to resume operations and compensate users after a significant security breach that forced the platform to pause activities.

In a town hall meeting that was broadcast on YouTube on February 13, 2025, from an undisclosed location, WazirX co-founder Nischal Shetty announced the plan to relaunch the platform with new features and services that will generate revenue to facilitate payouts to affected users when the platform opens next year.

Shetty, who was dressed in a black hoodie and spoke to the camera for over an hour, said that the exchange aims to have the platform fully restored and ready to resume trading by February 2025.

“We are aiming to get the exchange up and running again by February next year with some strategic recovery plans in place,” Shetty said during the meeting.

During the meeting, Shetty also announced the exchange’s intention to launch “recovery tokens,” which will be airdropped to creditors to allow them to recover up to 48% of their lost assets.

According to the YouTube video, when launched, the new digital assets will be distributed proportionally based on users’ holdings and will be tradeable on the platform.

In addition to introducing new services like crypto staking, an over-the-counter (OTC) trading desk, and futures trading opportunities for users, a portion of the trading fees generated from the new services will be allocated to supporting the buyback of recovery tokens, the exchange said.

The move aims to bolster the exchange’s recovery fund and gradually reimburse users.

In response to user demand for greater self-custody options, WazirX said it is in the early stages of developing a decentralized exchange (DEX) that will complement its existing platform.

According to the company, this new DEX will come equipped with a native governance token, allowing users to participate in the platform’s ecosystem by trading and earning rewards.

The revenue generated from the DEX will also contribute to victim payouts, with users being given the option to convert their recovery tokens into DEX tokens.

WazirX’s recovery plan extends beyond platform upgrades. The exchange is actively exploring partnerships with potential “white knight” investors to secure rescue financing to help with the payouts.

Additionally, the exchange is pursuing legal measures to recover stolen assets.

“We are committed to pursuing all avenues to reclaim illiquid and stolen funds for the benefit of our creditors,” the company said on X.

While users have so far been able to withdraw 55% of their crypto holdings and 66% of their fiat deposits, the remainder remains inaccessible.

Cybercriminals targeted the exchange in July 2024, draining over $235 million in customer funds from the platform. The incident exposed vulnerabilities in WazirX’s security, forcing the company to suspend operations and prompting a restructuring process based in Singapore, where its parent firm, Zettai, operates.

In September, a federal court in Singapore granted the exchange four months to develop a sound restructuring plan.

Despite the $235 million blow on the exchange, WazirX is facing other regulatory challenges from Indian authorities.

The hack opened up the exchange for investigation by financial authorities in India. Reports indicate that the Financial Intelligence Unit (FIU) is looking into the exchange to determine the actual cause of the hack.

Additionally, a coalition of affected users has filed a class-action lawsuit against the company with the National Consumer Disputes Redressal Commission. The exchange is also facing two separate legal cases pending in the Delhi High Court.