WazirX Completes Token Rebalancing, Prepares for Distribution After Majority “YES” Vote

WazirX, one of India’s cryptocurrency exchanges, announced the successful completion of its asset rebalancing process. This is a step in addressing the asset deficit caused by last year’s cyberattack attributed to North Korean hackers.

Distribution to Begin After Majority “YES” Vote

The distribution of rebalanced assets is set to begin within 10 business days after the Scheme of Arrangement becomes effective. However, this timeline depends on court approvals and most users’ votes “YES” for the scheme. The initial distribution will be made in tokens and will cover approximately 85% of creditors’ balances, valued on July 18, 2024, at 1 PM IST. If the Scheme is executed within the estimated timeframe, it would mark one of crypto history’s fastest recovery and distribution processes.

This would mean that WazirX would have completed the withdrawal freeze, scheme approval, and initial distribution within a year—a record pace in the crypto industry.

WazirX Restructuring Process – Asset Rebalancing

Nischal Shetty, Founder of WazirX, expressed, “We are grateful to have reached this critical milestone. Completing the rebalancing process and preparing for distribution demonstrates Zettai’s deep commitment to protecting creditor interests and restoring the trust placed in the Platform. By targeting one of the fastest distribution timelines in the crypto industry, we hope to set a precedent for accountability, efficiency, and resilience in times of crisis.”

Subsequent Distributions and Asset Recovery Efforts

In addition to the initial 85% distribution, WazirX has planned subsequent distributions over three years. These will be funded through recoveries of illiquid assets, including stolen tokens, future profits generated from the platform’s operations, and the issuance of recovery tokens, which will be purchased to support creditor repayments.

As part of its asset recovery strategy, WazirX recently announced that it has frozen the first tranche of stolen assets, which amounts to approximately USD 3 million.

The platform partnered with zeroShadow, a leading blockchain forensics firm, to trace and recover stolen funds. “Leveraging our expertise and strong relationships with law enforcement agencies, exchanges, and projects, zeroShadow is proud to have played a key role in aiding WazirX to freeze the stolen assets and take a significant step toward recovery for affected users,” said Jarno Laatikainen, COO of zeroShadow.

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Transparency in Rebalancing

The rebalancing process was finalized in January 2025 and involved extensive work to ensure fair and transparent asset realignment. This required close collaboration with financial advisors, brokerage firms, and market specialists to execute secure trades across nearly 350 tokens, many of which have challenging liquidity profiles.

Jason Karachi, Managing Director and Co-Head of Kroll’s global restructuring practice, praised the efforts: “The successful completion of the rebalancing process underscores the importance of careful planning, collaboration, and a dedication to fairness. Aligning the value of assets with liabilities in a volatile crypto market is no small feat, but this approach has maximized transparency and precision throughout. This marks a critical step forward in the recovery process and sets a new benchmark for addressing such complex challenges in the crypto industry.”

With the asset rebalancing complete and distribution set to begin after the majority “YES” vote, WazirX is now focused on the final stages of its restructuring and recovery plan.