Singapore’s High Court has sanctioned the creditor backed restructuring of WazirX’s parent Zettai Pte. Ltd., clearing the way for the Indian exchange to restart within 10 business days of the order becoming effective. A token based recovery will compensate users alongside direct crypto distributions. This report explains what will actually happen at restart, how Recovery Tokens work, and what controls WazirX says it will implement to avoid a repeat of the 2024 heist.
What is restarting and when
WazirX states that, once the court order is filed with Singapore’s Accounting and Corporate Regulatory Authority (ACRA) and becomes effective, the platform will reopen and begin token distributions within 10 business days. The restart window points to late October if filings complete promptly. User notifications will detail the filing date, the effective date, and the distribution timetable.
Threat Model Snapshot
Incident class Centralized exchange hot wallet compromise leading to multi asset outflows across EVM chains and Bitcoin.
Primary vectors observed industry wide key leakage or signing ceremony errors, compromised infrastructure credentials, and third party access paths.
WazirX specific risk areas to harden
Key custody and signing hot wallet thresholds, automated withdrawal queues, and manual overrides. Adoption of multi party computation for signing.
Change management release processes for wallet software and key ceremonies with dual control and logged approvals.
Third party risk custodians, analytics providers, market makers, and any privileged API users with transaction rights.
Monitoring real time anomaly detection on withdrawal patterns, spend policies, and chain specific heuristics.
Incident response playbooks for address freezing with partners, chain analytics, and law enforcement escalation.
Defense Playbook in practice
1. Segregated custody with policy engines Production wallets operate under per asset policies withdrawal velocity caps, address allowlists, asset specific circuit breakers, and emergency pause authority owned by a defined incident committee.
2. MPC first signing with hardware backed roots For assets with robust MPC libraries, keys are never fully materialized. For others, hardware security modules enforce quorum approvals with tamper evident audit trails.
3. Independent settlement checks A second system validates intent before a transaction enters the mempool, rejecting transactions that breach policy or deviate from user initiated patterns.
4. Post trade reconciliation Continuous matching of account ledgers, wallet balances, and chain data with timed attestations. Exceptions trigger automated holds.
5. Third party containment Rotate secrets frequently, enforce least privilege scopes, and audit vendor modules for signing capability, database write access, or cloud role escalation.
6. Recovery drills Quarterly restorations from seed backups, cold start rotations, and simulated exchange wide withdrawals to test liquidity and alerting.
How Recovery Tokens and crypto distributions are expected to work
WazirX’s scheme makes a distinction between funds present before the July 2024 hack and post hack deposits. Pre hack balances are covered by the scheme. Public guidance from WazirX and independent explainers indicates a blended model where users receive a combination of direct crypto distributions and Recovery Tokens that vest or are bought back over time. The upfront share commonly cited ranges from around three quarters to the mid eighties percent of covered balances, with the remainder represented by Recovery Tokens. Exact allocations depend on claim categories and final scheme mechanics communicated to each creditor.
What Recovery Tokens represent
A claim on future cash flows or buybacks tied to the exchange’s recovery roadmap.
Transferability rules set by the scheme some tokens may be tradable on the platform once operations resume, subject to jurisdiction limits.
A schedule for initial distribution shortly after restart, followed by staged events.
Post hack deposits balances credited after the incident are expected to be returned in kind once the scheme is effective and ledgers reconcile, per WazirX guidance.
Indicative compensation structure by creditor class
| Creditor class | Coverage window | Initial crypto distribution | Recovery Tokens allocation | Notes |
|---|---|---|---|---|
| Retail users with pre hack balances | Funds on the platform before mid July 2024 | ~75% to ~85% of eligible balance in liquid assets after restart | Remainder as Recovery Tokens with buyback or vesting | Exact percentage and timing communicated in individual notices |
| Retail users with post hack deposits | Funds credited after the incident | Target of near full return in the same assets after ledgers reconcile | None | Excluded from hack loss bucket per scheme guidance |
| Institutional or market maker accounts | Per contracts and reconciliation | Tailored plan aligned with platform liquidity | May receive tokens plus bespoke terms | Subject to negotiated treatment and regulatory constraints |
Figures are indicative ranges compiled from scheme summaries and public guidance, not a substitute for official notices.
From hack to restart
July 2024 Multi hundred million dollar exploit drains exchange wallets across several chains. Platform pauses and begins forensic work.
Q1 2025 Creditors vote on a recovery scheme. WazirX outlines token based compensation and staged reopen.
June 2025 Singapore’s High Court rejects an earlier proposal and asks for revisions addressing token mechanics and regulatory fit.
October 2025 Revised scheme receives court sanction. Company prepares ACRA filing. WazirX states operations will restart within 10 business days of effectiveness with initial token distributions soon after.
Operational checklist for the restart window
User comms publish the legal filing date, effective date, and per user claim snapshots with asset level detail.
Liquidity plan pre position assets for withdrawals and market making; disclose any temporary withdrawal tiers or limits.
Security attestations disclose new custody model, MPC providers, and external audits. Share a wallet policy summary without sensitive parameters.
Transparency create a public dashboard showing gross claims, assets staged for distribution, Recovery Tokens minted and retired, and week over week progress.
Regulatory alignment confirm applicable KYC and transfer controls for Recovery Tokens across jurisdictions.
Questions
How will I know my exact payout
You will receive an official notice with your account snapshot, the filing and effective dates, the percentage of your balance paid in liquid crypto at restart, and the Recovery Tokens amount with its schedule.
Can Recovery Tokens be traded
The scheme may allow trading on the platform under specified conditions once operations resume. Transferability and buybacks will be governed by scheme rules and jurisdictional constraints.
What happens if filings are delayed
Distributions only begin after the order is effective. Any delay in ACRA filings or effectiveness shifts the restart window accordingly and WazirX will be expected to update timelines in user notices.
What to watch next
ACRA filing confirmation and effective date this starts the 10 business day clock.
Custody partner confirmations public documentation of MPC and hot cold segregation. Partnerships with qualified custodians.
Distribution accounting independent reconciliation showing sums distributed, remaining claims, and token retirement pace.
Market integrity surveillance of pairs at relaunch, wash trading controls, and disclosure of any temporary withdrawal tiers.
Conclusion
The court’s sanction gives WazirX a narrow and closely monitored path back to operations. The token plus crypto distribution model can rapidly restore access to a large portion of user balances while aligning long tail claims with the platform’s recovery. Execution discipline in custody, transparency, and liquidity will determine whether the restart stabilizes user trust or risks a second crisis.
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