Namaste Tribe!
The approved Scheme of Arrangement by Zettai Pte Ltd introduces Recovery Tokens (RTs) as a mechanism for Scheme Creditors to participate in future recoveries arising from profit-sharing, recovered Illiquid Platform Assets, and other eligible sources under the Scheme.
Here’s a breakdown of why RTs are a game-changer in the Scheme:
What are Recovery Tokens (RTs)?
Under the approved Scheme, the Creditors will be issued Recovery Tokens on a pro-rata basis. Each Scheme Creditor will be allocated Recovery Tokens based on the proportion of their Approved Claim to the total value of all Approved Claims, ensuring a fair distribution among creditors. The First Distribution is already completed, and the remaining RT allocation will be completed within 60 business days from the Scheme’s effective date of 15 October 2025.
The main purpose of Recovery Tokens is to enable additional recoveries under the Scheme. At the end of a recurring 3-month period commencing from the issue date of the Recovery Tokens, and subject to the net recovery and/or receipt of at least USD10 million of unencumbered assets through, among others, receipt of Illiquid Platform Assets, recovery of Stolen Wallet Assets, and shared surpluses in accordance with the terms of the Scheme (“Recovery Token Purchase Milestone”), the Company will determine the appropriate sum to be made available for purchase of RTs ("Milestone Amount”).
Subsequently, within 1 month of each Recovery Token Purchase Milestone, and subject to the Token Issuer’s receipt of the Milestone Amount, the Company will procure the Token Issuer to offer to purchase the Recovery Tokens from each Recovery Token Holder.
If the net recovery in a given period is below USD 10 million, it will roll forward to the next 3-month cycle and be factored into subsequent purchase rounds.
Subject to the fulfilment of legal and regulatory requirements, the Token Issuer may implement functionality to allow Scheme Creditors to trade Recovery Tokens, and each holder of Recovery Tokens (“Recovery Token Holder”) will be entitled to receive Distributions via purchase of Recovery Tokens in accordance with this Clause 7 of the Scheme of Arrangement dated 23 July 2025..
Key Highlights of Recovery Tokens
» Potential for Additional Recoveries: Recovery Tokens allow eligible creditors to benefit from future recoveries of Illiquid Platform Assets and shared surpluses under the approved Scheme. At the end of each recovery cycle, the Company will determine the amount available for RT repurchase based on verified recoveries.
» Pro-rata Issuance: Each creditor receives Recovery Tokens in proportion to their approved claim value, ensuring a fair and transparent allocation process aligned with the total verified claims under the Scheme.
» Trading Functionality: Subject to the fulfilment of legal and regulatory requirements, the Token Issuer may implement functionality to allow Scheme Creditors to trade Recovery Tokens, and each holder of Recovery Tokens (“Recovery Token Holder”) will be entitled to receive Distributions via purchase of Recovery Tokens in accordance with this Clause 7 of the Scheme of Arrangement dated 23 July 2025..
» Purchase Pricing: The price at which Recovery Tokens are repurchased will be determined by the extent of recoveries made during each cycle, allowing creditors to participate in any realized or market-driven value while ensuring the Company retains no upside.
FAQs around Recovery Token (RTs)
When will I receive my Recovery Token
Distribution of Recovery Tokens will take place within 60 business days from the Scheme's effective date of 15th October, 2025.
How many Recovery Tokens will I receive?
As a Creditor, you can view the Recovery Token allocation on the Rebalanced NLPA page.
Path:
WazirX App → Settings → Scheme of Arrangement → Rebalanced NLPA page.
This page reflects the number of Recovery Tokens that will be allocated to you under the Scheme.
What is the value of the Recovery Token?
The Token Issuer shall determine the price at which it would purchase Recovery Tokens as follows:
Purchase Price = (MTM Value of Illiquid Platform Assets - Aggregate Milestone Amounts) / TNC
Whereby:
- Purchase Price is the price at which the Token Issuer offers to purchase 1 Recovery Token, and in such token or fiat denomination as the Token Issuer determines
- MTM Value of Illiquid Platform Assets is the USD equivalent of the aggregate marked to market value of the Illiquid Platform Assets as at a date to be determined by the Company during the 1-month period post the Recovery Token Purchase Milestone
- Aggregate Milestone Amounts refers to the total Milestone Amounts prior to the relevant Recovery Token Purchase (in USD equivalent at each prior Recovery Token Purchase Milestone)
- TNC is the total number of Recovery Tokens in circulation as at the relevant Recovery Token Purchase Milestone, less the number of Recovery Tokens offered to be purchased at all prior Recovery Token Purchase Milestone(s) but which offer(s) has yet to be accepted.
Subject to the fulfilment of legal and regulatory requirements, the Token Issuer may implement functionality to allow Scheme Creditors to trade Recovery Tokens. If trading is enabled, any market prices will be determined by market forces and the supply and demand on the Platform. This will be independent of the Recovery Token Purchase Prices determined at each Recovery Token Purchase Milestone.
Each holder of Recovery Tokens (“Recovery Token Holder”) will be entitled to receive Distributions via purchase of Recovery Tokens in accordance with this Clause 7 of the Scheme of Arrangement dated 23 July 2025.
When will the distribution take place, and how can I access the tokens?
Distribution will be completed within 60 business days of the Scheme becoming effective on 15 October 2025. Once distribution is done, your Recovery Tokens will automatically appear on the Funds page and become part of your overall portfolio.
Why isn’t the Recovery Token visible in the main Funds section yet?
Recovery Tokens are not visible yet because the distribution and allocation process is still in progress. After distribution is complete, the tokens will appear on the Funds page and be included in your total portfolio holdings.