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 Tornado Cash and other mixers, making recovery extremely difficult.
Immediate Aftermath
- Both crypto and INR withdrawals were suspended.
- Users lost access to their balances overnight.
- The breach drew attention from the Indian Enforcement Directorate and international 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 government and RBI to respond to a petition for a special investigation team, pointing to concerns 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 Return 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 journey …”
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 warned users that full 100% recovery may not be guaranteed due to lost assets.
How and When Customer Funds Will Be Returned?
| 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. |
| By End of October 2025 | Target window for WazirX platform relaunch and initial fund return. |
Fund Return Structure of WazirX
- Post-Hack Depositors (after July 18, 2024)
- Assets will be returned in the same token denominations, wherever feasible.
- Pre-Hack Users (affected by the theft)
- Will receive pro-rata distributions of remaining assets.
- Will also receive Recovery Tokens (RTs) — tokenized claims tied to future exchange revenues and asset recoveries.
- Additional Measures
- WazirX has introduced a KYC re-verification and claim-submission portal to ensure authenticity.
- Future recoveries or profits from trading operations will be used to further compensate users.
According to CoinDesk and Economic Times, early estimates suggest that victims could recover 80–85% of the value of their assets over time.
Current Status and Relaunch Plans of WazirX
Platform Relaunch
- WazirX aims to restart trading and withdrawals by late October 2025, following technical audits.
- The exchange is partnering with BitGo for new custody and insurance arrangements.
- WazirX’s native token WRX surged over 20% after the restructuring approval, showing renewed investor confidence.
Security Upgrades
- Multi-layered security architecture using multi-party computation (MPC).
- Real-time proof-of-reserves dashboards and transparent audit reporting.
- 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: A Path to Redemption
Despite the enormous setback, WazirX’s structured 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 Users Should Do Now
- Complete KYC updates and claim verification when the portal reopens.
- Track updates via WazirX Blog and official social channels.
- Retain transaction history and wallet proofs for faster validation.
What’s Next
If WazirX successfully executes its plan:
- Users could regain up to 85% of their funds over time.
- The platform may relaunch as a hybrid exchange combining centralized and decentralized trading features.
- The WRX token may regain relevance if confidence returns.
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 court approval secured and a relaunch imminent, users may finally see light at the end of the tunnel.
While the return process won’t be instantaneous or complete for all, WazirX’s structured and transparent approach could set a new benchmark for crisis management in crypto exchanges.
References
- WazirX Official Blog – The Scheme of Arrangement is Now Effective
- CoinDesk – WazirX Set to Restart Within 10 Days After Hack
- Economic Times – Singapore Court Okays WazirX Parent’s Plan for Asset Return
- Cointelegraph – Court Approves WazirX’s $230M Hack Recovery Plan
Author’s Note:
This article is based on verified reports (as of October 2025) from WazirX’s official communications and reputable crypto news outlets. Future updates will depend on the exchange’s relaunch and subsequent fund-distribution progress.
