Indian cryptocurrency exchange WazirX, recently hacked for over $230 million, is taking steps to settle debts with creditors by issuing a Recovery Token. In a recent post on X, the exchange detailed plans to airdrop the token proportionally to creditors based on their platform balances.
WazirX highlighted the Recovery Token's potential for fund recovery through profits from future platforms, new business ventures, realization of illiquid assets held externally, recovery of stolen assets, and potential capital from White Knight partnerships. The token's use cases include buybacks to improve creditor recovery rates and trading for liquidity, offering creditors early fund access and flexibility.
In an additional post, WazirX outlined four major strategies to maximize fund recovery. Among them is the reopening of its trading platform, with trading fees shared with creditors to create a steady recovery stream. WazirX also plans to launch a native DEX token and enable Recovery Token swaps for creditor advantages.
To diversify revenue, WazirX intends to introduce a decentralized exchange (DEX), staking options, an over-the-counter (OTC) desk, and futures trading. The DEX will combine centralized exchange convenience with self-custody security, aiming to boost liquidity through user rewards and an intuitive interface.
The staking feature will offer users rewards based on blockchain network support, with deposits into a staking pool or direct use of smart contracts. The OTC desk will cater to large-scale transactions for institutional investors, while futures trading will enable leveraged speculation on crypto price movements.
Additionally, WazirX is actively pursuing legal avenues to recover illiquid and stolen assets for creditor benefit and exploring White Knight proposals for rescue financing. The exchange expressed gratitude for the community’s patience as it works to implement these recovery measures.