Origins and Growth of WazirX
Founded in 2018 by Nischal Shetty, Siddharth Menon, and Sameer Mhatre, WazirX quickly became India’s most popular cryptocurrency exchange, known for its INR-to-crypto trading and peer-to-peer (P2P) system.
- Operated by Zanmai Labs Pvt. Ltd. (India) and parent company Zettai Pte. Ltd. (Singapore).
- Acquired by Binance in 2019 (though ownership disputes later emerged).
- Before the hack, WazirX had over 15 million registered users and handled billions in trading volume.
So, by mid-2024, WazirX was well-known in India’s crypto scene and felt like one of the leading exchanges. But that position was severely shaken when the hack happened. Despite a strong start, the lack of clear Indian crypto regulations and rising global compliance pressure created operational challenges.
The Hack / Crypto Theft Incident of WazirX
What Happened
On July 18, 2024, WazirX disclosed a massive security breach resulting in the theft of roughly US $230–235 million worth of crypto assets.
- The exploit targeted WazirX’s multisignature (multisig) wallet, which used the Safe (formerly Gnosis Safe) protocol and custody provider Liminal Custody.
- Investigations linked the breach to the Lazarus Group, a North Korea–based cyber-hacking network.
- Stolen assets were laundered through Toado Cash and other mixers, making recovery extremely difficult.
Immediate Aftermath
- Both crypto and INR withdrawals were suspended.
- Users lost access to their balances oveight.
- The breach drew attention from the Indian Enforcement Directorate and inteational regulators.
This incident placed WazirX among the largest crypto exchange hacks globally, forcing the company to pursue legal restructuring rather than bankruptcy.
Immediate impact
- WazirX halted or froze withdrawals (both crypto and INR) shortly after the incident.
- They announced they would “undo all trades” that occurred after the freeze (to restore user balances to the state as of July 18, 2024, 1 pm IST).
- The user community reacted strongly: many users worried about losing large chunks of funds. Media reports estimated users might recover only ~55-60% of their funds under the restructuring.
Longer-term fallout
- The hack triggered legal and regulatory scrutiny in India: e.g., the Delhi High Court asked the govement and RBI to respond to a petition for a special investigation team, pointing to conces about WazirX operations.
- WazirX froze some of the stolen funds (e.g., ~US$3 million USDT tranche) through efforts with custodians / law enforcement.
- The hack undermined user trust, and slowed WazirX’s operations; it effectively entered a restructuring mode rather than just business as usual.
Notice from WazirX: Official Fund Retu Announcement
On October 16, 2025, WazirX released a blog post titled “The Scheme of Arrangement is Now Effective.”
“Zettai Pte. Ltd. has successfully proposed a Scheme of Arrangement approved by creditors and sanctioned by the Singapore High Court. The order was filed on October 15, 2025, and the Scheme is now effective.”
— Official WazirX Blog (October 2025)
In that blog post:
“As soon as the scheme is legally effective … we will start platform operations within 10 business days.” WazirX
On their social handle X (Twitter):
“The WazirX platform will restart within 10 business days from the Scheme’s effective date of 15 October 2025. Your patience and trust through this jouey …”
Key Takeaways from the Notice
- The Scheme of Arrangement became legally effective on 15 October 2025.
- Exchange restart is scheduled within 10 business days of this date.
- Users will regain access via a claims and token-distribution process.
- Eligible customers will receive a mix of crypto redemptions and Recovery Tokens (RTs) representing potential future value.
The exchange has also waed users that full 100% recovery may not be guaranteed due to lost assets.
How and When Customer Funds Will Be Retued?
| Date | Milestone |
|---|---|
| 18 July 2024 | Hack occurs; withdrawals suspended. |
| 13 October 2025 | Singapore High Court sanctions restructuring plan. |
| 15 October 2025 | Scheme officially effective; court order filed. |
| 24 October 2025 | Platform relaunch: Trading officially restarts with zero fees for 30 days. |
| October - December 2025 | Initial pro-rata crypto distributions begin. Mandatory KYC re-verifications for fund access. |
| 1 December 2025 | New fee structure "WazirX ZERO" (₹99/month) goes live for all users, ending zero-fee period. |
| By ~Mid-January 2026 | Deadline for issuing Recovery Tokens (RTs) to creditors (60 business days from Oct 15). |
Fund Retu Structure of WazirX
- Post-Hack Depositors (after July 18, 2024)
- Assets were retued in the same token denominations, and their balances were restored to the pre-hack snapshot.
- Pre-Hack Users (affected by the theft - "Scheme Creditors")
- Receive a pro-rata distribution of ~52% of their claim value from the remaining liquid platform assets.
- Receive Recovery Tokens (RTs) for ~23-28% of their claim value. RTs are tokenized claims on WazirX’s future recoveries and profits.
- Total potential recovery is estimated at 75-85% over time, contingent on the exchange's future success and further asset recovery.
- Additional Measures
- A mandatory KYC re-verification and claim-submission process was required to access funds.
- Future trading profits and any further asset recoveries will be used to buy back RTs from holders, gradually realizing their value.
Current Status and Relaunch Plans of WazirX (December 2025)
Platform Relaunch & Operations
- WazirX successfully restarted trading on October 24, 2025, with a 30-day zero trading fee period.
- As of December 1, 2025, a new dual fee structure is active:
- WazirX ZERO: A flat fee of ₹99 per month for unlimited, zero-fee trading. Best for active traders.
- Pay Per Trade: A dynamic fee based on 30-day trading volume and WRX holdings. Best for low-volume traders.
- Crypto and INR withdrawals are functionally enabled, but access requires completion of the KYC re-verification process.
Security Upgrades
- Multi-layered security architecture using multi-party computation (MPC).
- Real-time proof-of-reserves dashboards and transparent audit reporting.
- Partnership with insured custody provider BitGo for enhanced asset protection.
- Dedicated bug-bounty program for ethical hackers.
Regulatory Compliance
With crypto taxes and KYC norms tightening in India, WazirX plans to fully align with Indian FIU (Financial Intelligence Unit) and Singaporean MAS standards to rebuild credibility.
WazirX Today: The Path Forward for Users
Despite the enormous setback, WazirX’s structured, court-approved recovery approach is a milestone for the Indian crypto ecosystem. The exchange has chosen legal restructuring instead of closure — a first in India’s crypto space.
What Affected Users Must Do Now
- Complete any pending KYC updates and claim verification immediately. This is the essential step to unlock access to initial crypto distributions and future RTs.
- Track official updates via the WazirX Blog and verified social channels for announcements on RT distribution timelines.
- Retain all transaction history and wallet proofs for validation if required.
- Understand the nature of Recovery Tokens: RTs are not cash or stablecoins. They are a long-term claim whose value depends on WazirX's future profitability and recovery efforts.
What New and Retuing Traders Should Know
- Evaluate the two fee models (WazirX ZERO vs. Pay Per Trade) based on your monthly trading volume to minimize costs.
- The platform is operational, but exercise caution and consider it primarily as a trading venue, not for long-term storage of significant holdings.
- Utilize the new security features like Proof-of-Reserves to verify asset backing.
Conclusion
The WazirX hack was one of the most shocking events in India’s crypto history — but it has also led to one of the most comprehensive recovery frameworks in the sector. With the platform restarted and a court-mandated plan in motion, users are beginning to see a retu of assets, though not in full and not all at once.
While the process has been protracted and full recovery is not guaranteed, WazirX’s structured approach sets a new benchmark for crisis management and user restitution in the often-unforgiving world of cryptocurrency exchanges.
References
- WazirX Official Blog – The Scheme of Arrangement is Now Effective
- WazirX Official Blog – Trading to Resume on WazirX with Zero Trading Fee
- WazirX Support – Everything you need to know about Recovery Tokens
- CoinDesk – WazirX Set to Restart Within 10 Days After Hack
- Economic Times – Singapore Court Okays WazirX Parent’s Plan for Asset Retu
- Cointelegraph – Court Approves WazirX’s $230M Hack Recovery Plan
Author’s Note:
This article is based on verified reports and official communications (as of December 2025) from WazirX and reputable news outlets. The recovery process is ongoing; users should rely on official WazirX channels for the most current instructions.
