WazirX Ownership Dispute Enters Formal Litigation Stage Following Successful Platform Restart
Nischal Shetty, the founder of WazirX, confirmed on January 21, 2026, that the long-standing ownership battle with Binance has officially transitioned into the formal litigation stage. This legal escalation comes at a critical juncture for the Indian platform, which has just completed its court-supervised restructuring process in Singapore. Shetty maintains that the 2019 acquisition was legally binding and that Binance remains the true owner of the platform’s assets and intellectual property. According to WazirX’s legal filings, the dispute is no longer a matter of public debate on social media but a structured judicial process that will determine the ultimate liability for user funds and operational oversight. Despite the heavy “red ink” on its balance sheet following the 235 million dollar hack, WazirX’s leadership believes that a court victory would force Binance to recognize its stake and potentially contribute to the long-term recovery efforts of the affected user base.
The Impact of Litigation on the Recovery Token and purchaseback Schedule
The transition to formal litigation is expected to play a central role in the valuation and utility of the newly issued “Recovery Tokens” (RTs). These tokens represent a legal claim on WazirX’s future profits and any successful recoveries of “illiquid assets,” including potential settlements or court-ordered contributions from Binance. Under the approved restructuring scheme, WazirX has committed to quarterly purchasebacks of these tokens over the next thirty-six months, funded by platform revenues and law enforcement recoveries. However, the legal uncertainty surrounding the “parent company” status remains a significant headwind for the secondary market price of RTs. Shetty has emphasized that while the litigation is crucial for determining final accountability, it will not disrupt the platform’s day-to-day operations or the scheduled distribution tranches. The platform’s goal is to maintain a “business-as-usual” environment with zero trading fees on certain pairs to attract volume, even as the high-stakes legal battle unfolds in international courts.
Rebuilding User Confidence Amid the Search for a White Knight Investor
As the litigation proceeds, WazirX is actively viewking “White Knight” investors or strategic partners to expedite the remaining 15% to 25% of user recoveries. The platform’s successful rebegin on October 24, 2025, provided a much-needed operational foundation, but the shadow of the Binance dispute continues to deter some institutional backers. To address this “trust deficit,” WazirX has introduced enhanced transparency measures, including real-time proof-of-reserve audits and a more robust multi-signature custody infrastructure. The outcome of the lawsuit against Binance could serve as the ultimate catalyst for a full recovery, as it would clarify the platform’s standing in the eyes of both regulators and the global crypto community. For the 4.4 million users with active balances, the next three years will be defined by the platform’s ability to generate profit and the courts’ ability to provide a definitive answer to the question that has haunted the Indian crypto sector for years: who truly owns WazirX?
