WazirX Completes Recovery Token Allocation Under Court-Approved Scheme
WazirX has completed Recovery Token allocation to eligible users under its court-approved scheme, distributing 85% of rebalanced assets within 10 days of the 24 October platform restart. Recovery Tokens are issued pro rata based on approved claims and designed for proportional inclusion in future recoveries evaluated in three-month cycles with $10 million minimum thresholds.
*this image is generated using AI for illustrative purposes only.
WazirX has successfully completed the allocation of Recovery Tokens to all eligible users under its court-approved recovery scheme. The cryptocurrency exchange distributed approximately 85% of rebalanced net liquid platform assets to eligible users within 10 business days following the platform's restart on 24 October.
Recovery Token Distribution Timeline
The allocation of Recovery Tokens has been completed within the 60 business day timeline specified in the scheme. Eligible users can now view their allocated Recovery Tokens directly on the Funds page within the WazirX app.
| Parameter | Details |
|---|---|
| Platform Restart Date | 24 October |
| Asset Distribution | 85% of rebalanced net liquid platform assets |
| Distribution Timeline | Within 10 business days |
| RT Allocation Timeline | Within 60 business days |
Recovery Token Mechanism
Recovery Tokens are issued to scheme creditors on a pro rata basis, aligned with each user's approved claim. The tokens are designed to ensure that users remain proportionally included in any future recoveries realised by the platform over time.
Under the scheme, recoveries are evaluated in recurring three-month periods. During an evaluation cycle, when at least $10 million is realised, a portion of that value is allocated for the buyback of Recovery Tokens. If the value recovered by the platform in a period is less than $10 million, the recovery claim rolls over into the next period and combines with new recoveries until a distribution becomes viable.
Token Trading Status and Allocation Example
At present, Recovery Tokens are not tradable. Subject to applicable legal and regulatory requirements, Recovery Tokens may become tradable in the future.
The platform provided a simplified allocation example using a creditor named Priya:
| Allocation Parameter | Value |
|---|---|
| Priya's Total Claim (as of 18 July 2024) | $10,000.00 |
| Total Claims Value (as of 18 July 2024, 1:00 pm IST) | $546 million |
| Total Recovery Tokens for Distribution | 1 billion |
| Priya's Final RT Allocation | 18,315.02 RTs |
The allocation calculation involves determining the creditor's claim percentage of total claims, then multiplying this percentage by the total Recovery Tokens available for distribution. This ensures proportional allocation based on each user's approved claim amount relative to the total platform claims.
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