WazirX, India’s beleaguered cryptocurrency exchange, is moving forward with its “hope-and-prayer” strategy, as the Recovery Tokens (RTs) are now visible on the Rebalanced Net Liquid Platform Assets (NLPA) page in the WazirX app.
The exchange justified the decision by saying it was an effort to “maximizing recoveries” after a $230 million hack in July 2024. RTs, according to the exchange, represent users’ claims beyond the Rebalanced NLPA distribution and will lead to “additional recoveries over time through asset recoveries and profit-sharing.”
In the post on X, the exchange claims these tokens will help affected users recover more than just their initial distribution by tying future compensation to platform profits and asset recoveries. The real concern is whether this is a viable solution or just a way to stall for time.
Critics argue that making Recovery Tokens visible now, before the vote, could be a pressure tactic to get yes votes in there plan. In other words, users are being forced to accept an uncertain promise instead of real compensation.
WazirX is distributing 1 billion RTs among the users according to their proportionate share in the total claims. If the user had $10,000 when the hack was done and total claims stand at $546 million, he or she will receive 18,315 RTs.
But here’s the catch, RTs have no inherent value unless WazirX can generate profits or recover stolen assets.
The exchange claims it will repurchase RTs through two primary sources: profits from its upcoming decentralized exchange (DEX), which is still in development, and recoveries from frozen or stolen assets, which remain highly uncertain.
This means users’ compensation depends on WazirX successfully launching and monetizing new ventures or retrieving lost funds—both of which carry significant risks.
The July 2024 hack was India’s largest crypto heist, which was reportedly carried out by the North Korean Lazarus group. The hack not only erased user funds but also raised serious questions about WazirX’s security protocols.
Ever since the firm has been in a rush to regain trust. It says it has “rebalanced” its assets and outlined a recovery plan to restore 85% of funds lost by April 2025—but only if users vote on the plan set for March 19-28, 2025. In the event that it is passed, payouts will be made within 10 business days.
The truth is that WazirX has already lost users’ trust, so the question is, why will they use another service provided by WazirX? So this whole plan of WazirX is based on lots of ifs.
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