WazirX recovery tokens explained: what users should know
What happened in the 2024 WazirX hack, how the court-approved restructuring and recovery tokens work, and what affected Indian users should do now.
- Checked against the rules: Oct 2026
- Sources cited · No buy or sell calls
The WazirX hack was the biggest loss in Indian crypto history, and it changed how many investors think about keeping funds on exchanges. Here's a plain-English summary of what happened and where things stand.
What happened
On 18 July 2024, attackers drained roughly $235 million from one of WazirX's multi-signature wallets. Investigators attributed the attack to the Lazarus Group, a hacking group linked to North Korea. WazirX froze withdrawals and later "socialised" the loss across users, meaning everyone's balances were affected, not just holders of the stolen coins.
The restructuring
Zettai, WazirX's Singapore parent, sought a restructuring through the Singapore courts. Creditors, mainly WazirX users, voted on a scheme setting out how remaining assets would be distributed. WazirX restarted trading in late October 2025. Under the scheme, users with pre-hack balances received roughly 85% of their value as of 18 July 2024, and the remaining 15% as recovery tokens.
What recovery tokens are
Recovery tokens represent your share of value that may be recovered in future: from tracing stolen funds, from the platform's future revenue, or from other sources set out in the scheme. They are not your original coins, and their eventual value depends on how much is actually recovered.
WazirX said on 9 January 2026 that recovery tokens had been credited to all eligible users, pro rata to their approved claims.
How they're meant to be redeemed:
- Quarterly buybacks: WazirX reviews recoveries every three months and buys back tokens when net recoveries cross a threshold of about $10 million in a period.
- Funding: buybacks come from platform profits and any recovered stolen or illiquid assets.
- Timeline: the scheme runs to around 2028. There's no fixed date by which the full 15% must be repaid.
Reports differ on whether recovery tokens can be traded or withdrawn yet, and WazirX hadn't publicly confirmed any buyback quarter by mid-2026. Check the Funds tab in your WazirX app and the official announcements, not social media, for the current position.
What affected users should do
- Check your account for distributions and recovery tokens, and download statements.
- Read official notices only. Scammers have targeted WazirX users with fake "recovery" offers. No legitimate process asks for your password, OTP or seed phrase.
- Keep every record: balances on the hack date, distributions received, emails and claim documents.
- Understand the tax position. The loss from the hack isn't deductible under India's crypto rules, which don't allow losses to be set off. Distributions and later recoveries may have tax consequences; ask a professional. See crypto losses in India.
Lessons for every Indian investor
- Exchanges can fail, even registered ones. FIU registration is about money laundering, not safety. See what FIU registration means.
- Don't keep more on an exchange than you need to trade. For long-term holdings, consider a self-custody wallet.
- Spread risk. Using more than one platform limits your exposure to any single failure.
- Check proof of reserves and security history when choosing an exchange.
Sources
- CoinGeek: Indian exchanges offer takeover and financial help to WazirX
- CoinLore: WazirX news, including the January 2026 recovery token update
- Bitcoin World: what happened to WazirX users' funds after the hack
Frequently asked questions
Can I sell my recovery tokens?
That depends on the scheme's rules and any trading facilities WazirX provides. Check official announcements.
Is WazirX operating again?
WazirX relaunched trading after the restructuring. Whether to use it is your decision; weigh its history and current disclosures.
Was CoinDCX also hacked?
CoinDCX reported a breach of an internal operational account in July 2025, and a further loss of about $16 million from retired wallets in October 2026. In both cases it said customer funds were unaffected and it covered the loss. See CoinDCX's $16 million loss.
Sources
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