In mid-2024, WazirX was India’s largest, with over 16 million users and a daily trading volume often crossing $50 million. For many retail investors, it was the primary gateway into digital assets.
This changed on July 18, 2024, when hackers drained more than $230 million from its multisig wallet. Overnight, trading halted, withdrawals froze, and India’s most trusted exchange found itself in survival mode. The incident revealed how vulnerable centralized crypto infrastructure still was in a rapidly expanding market.
What followed was a year of investigations, moratoriums, and court hearings across jurisdictions. By October 2025, WazirX secured final court approval for its repayment scheme, signaling the first major user recovery in India’s crypto history.
This article traces that entire journey: how the hack unfolded, how users organized, and how a long, complex restructuring effort finally brought closure to one of the biggest crises in Indian crypto.
WazirX officially reopened INR and crypto deposits today, marking the first operational step since court approval of its recovery plan. Users can now add funds and begin restoring account activity.
In an update from his official handle, founder Nischal Shetty announced that crypto trading and withdrawals will also go live starting tomorrow, with more tokens to be gradually added to the supported trading and withdrawal list.
The Scheme of Arrangement officially became effective on October 15, 2025, marking the end of over 15 months of frozen assets and paving the way for user repayments. This followed the Singapore High Court’s approval two days prior, allowing WazirX to distribute approximately 85.5% of users’ portfolio values within 10 business days of ratification.
The plan includes upfront recoveries for pre-hack deposits and Recovery Tokens for the remaining 15%, with operations set to resume soon. Founder Nischal Shetty emphasized continued collaboration with stakeholders to ensure a smooth relaunch.
ALSO READ: WazirX Relaunch 2025: Recovery Plan, Token Distribution & What to Expect
Singapore’s High Court greenlit WazirX’s revised debt restructuring plan on October 13, 2025, after rejecting an earlier version due to procedural issues.
The amended scheme, supported by 95.7% of voting creditors representing 94.6% of claims, addresses the $234 million loss by prioritizing creditor protections and asset distribution. This ruling resolves a year-long legal saga under the Insolvency, Restructuring and Dissolution Act, enabling the exchange to reopen with enhanced security measures. Users with pre-July 18, 2024 deposits stand to recover the bulk quickly, while post-hack funds follow a tiered timeline.
ALSO READ: WazirX Court Hearing & Fund Release Timeline
Revoting on the amended Scheme concluded with 95.7% of participating creditors and 94.6% in value backing the plan on August 18, 2025, verified by independent assessors Joshua Taylor and Henry Anthony Chambers. This strong endorsement came after a court-mandated revote following the June rejection, incorporating community feedback on token distributions and protections.
WazirX highlighted partnerships like BitGo for custody to rebuild trust. The results cleared a major hurdle toward final court sanction and fund releases.
ALSO READ: Can I Withdraw From WazirX Now? [Latest Update]
In a pivotal ruling, the Singapore High Court on July 16, 2025, set aside its earlier June rejection and permitted a revote on an amended Scheme of Arrangement, extending the moratorium until resolution.
This decision addressed procedural flaws in the initial proposal, allowing for clearer creditor voting from July 30 to August 6. WazirX committed to transparency with a dedicated Townhall explaining changes, focusing on higher recovery rates via Recovery Tokens. The move signaled renewed hope for users amid ongoing asset freezes.
The Singapore High Court declined to approve WazirX’s first restructuring proposal on June 4, 2025, citing inadequate creditor safeguards despite 93.1% voting support in April.
The rejection stemmed from concerns over procedural compliance and protections, prompting immediate evaluations of appeals and revisions. WazirX assured users that net liquid platform assets remained secure in cold storage. This setback delayed distributions but spurred refinements leading to the eventual amended plan.
ALSO READ: How to Transfer Bitcoin from WazirX to Mudrex: Step-by-Step Guide
A resounding 93.1% of voting creditors, accounting for 94.6% of claim value, approved the Scheme of Arrangement on April 7, 2025, following a March voting period.
This milestone advanced the process toward a May court hearing for sanction, with plans for 85% upfront recoveries using rebalanced assets. Independent verification ensured fairness, while tools like the Rebalancing Calculator helped users estimate entitlements. The vote underscored community solidarity in the face of the $235 million breach.
On January 24, 2025, the Singapore High Court granted leave to convene a Scheme Meeting, propelling WazirX’s restructuring forward after the December application.
This approval set the stage for voting on asset distributions, with approximately $3 million in stolen USDT already frozen through global efforts. Joint statements from U.S., Japan, and South Korea agencies linked the hack to North Korean actors, boosting recovery collaborations. Users anticipated first distributions within 10 business days post-approval.
The Singapore High Court issued a four-month moratorium on September 26, 2024, under the Insolvency, Restructuring and Dissolution Act, shielding WazirX from creditor actions during restructuring. Conditional on disclosures like wallet addresses for 240,000 users, it provided breathing room to form a Committee of Creditors. This followed the August filing and enabled phased INR withdrawals up to 66% for eligible users. The step was crucial in stabilizing operations post-hack.
WazirX initiated a bounty program on July 21, 2024, offering up to $10,000 in USDT for tips and 10% ($23 million) as a white-hat reward for fund recovery.
Amid paused trading and withdrawals, the exchange coordinated with over 500 global platforms to freeze addresses and filed FIRs with Indian authorities. Investigations revealed no signer machine compromises, with small asset recoveries underway. By late July, over 200 inquiries flooded in, galvanizing community and expert involvement.
ALSO READ: Why Did Users Lose Access to Crypto on WazirX?
Hackers exploited a vulnerability in WazirX’s multisig wallet on July 18, 2024, siphoning $234.9 million in ETH and ERC-20 tokens via Liminal’s infrastructure.
The breach, linked to North Korean Lazarus Group tactics, prompted immediate halts on deposits, withdrawals, and trading to curb further losses. WazirX notified users, reported to CERT-In and FIU-India, and engaged forensic experts. The incident affected 16 million users, freezing billions in INR and crypto equivalents.
| Event | Date | Key Outcome |
| Hack Incident | July 18, 2024 | $234.9 million drained from WazirX’s multisig wallet via compromised infrastructure. |
| Legal Proceedings Begin | September 2024 | Singapore High Court grants a moratorium to allow restructuring under creditor protection. |
| First Recovery Vote | April 7, 2025 | 93.1% of creditors back WazirX’s initial Scheme of Arrangement. |
| Initial Plan Rejected | June 4, 2025 | Court cites procedural issues and requests stronger creditor safeguards. |
| Revote Ordered | July 16, 2025 | Court permits a revised plan and extended moratorium. |
| Final Revote Approved | August 18, 2025 | 95.7% of creditors and 94.6% of claim value support the amended plan. |
| Court Sanction Granted | October 13, 2025 | Singapore High Court approves WazirX’s revised repayment scheme. |
| Scheme Becomes Effective | October 15, 2025 | Repayment process to begin; users to receive 85.5% of holdings within 10 business days; remaining 15% via Recovery Tokens. |
| Crypto and INR Deposits functional | October 23, 2025 | WazirX re-opens Crypto and INR deposits. Trading to restart soon. |
The court-approved repayment plan has two parts—upfront recoveries and Recovery Tokens—structured to balance immediate liquidity with long-term accountability.
Within ten business days of court ratification, eligible users will receive about 85.5% of their pre-hack portfolio value.
These payouts are being funded through:
The repayments will be made in a combination of cryptocurrency and INR, depending on each asset’s recoverability and available reserves.
Users will see a detailed breakdown of the asset type and amount in their dashboards once operations resume.
The remaining 15% of user balances will be issued as Recovery Tokens, a debt instrument representing WazirX’s formal liability to users for unrecovered assets.
This mechanism allows WazirX to meet immediate obligations responsibly while maintaining legal transparency on pending dues.
The recovery scheme is executed under the Insolvency, Restructuring and Dissolution Act (Singapore), monitored by independent assessors to ensure fairness and compliance. Custodial responsibilities have been transferred to BitGo, a regulated digital asset custodian, to enhance asset protection.
Repayments will precede the full reopening of the exchange. WazirX plans to re-enable withdrawals first, followed by deposits and trading, after third-party audits and regulatory reviews are completed.
The WazirX case sets a precedent for how Indian exchanges, regulators, and users might respond to future crises in digital finance.
Until this point, India’s crypto market had largely operated in a regulatory grey zone. The WazirX hack forced both exchanges and courts to confront questions about jurisdiction, asset custody, and user rights across borders.
The Singapore High Court’s involvement showed that structured debt resolution frameworks can be applied even in decentralized markets. It also put the onus on Indian exchanges to adopt clearer governance models, independent audits, and transparent communication during emergencies.
Future exchanges will likely be judged not just on security infrastructure but also on how they handle recovery and disclosure when failures occur.
ALSO READ: What India Thinks: Crypto Regulation, Taxation & Investment Trends 2025
For Indian crypto users, this case may serve as the first real example of enforceable creditor protection. The use of a court-backed debt instrument (Recovery Tokens) signals an evolution toward more formalized user compensation models—something previously unheard of in crypto.
It also highlights the need for domestic frameworks that define what investor protection means in digital asset markets. Without clear consumer protection laws, most users remain dependent on the goodwill and competence of individual platforms.
ALSO READ: WazirX Hack Update: Recovery Efforts & Token Replacement Plans
Whether this process restores trust or exposes systemic risk depends on how WazirX executes its next phase. Timely repayment and transparent audits could reinforce confidence that crypto exchanges can recover responsibly after major breaches.
However, it also underlines a deeper truth: even in an industry built on decentralization, user safety still hinges on centralized custodians. Until exchanges implement verifiable proof-of-reserves, stronger multi-jurisdiction oversight, and real-time asset transparency, user faith will remain conditional.
In a market often driven by hype cycles and speculation, the WazirX recovery stands out as a rare exercise in accountability. It has shown that Indian exchanges can pursue structured, legal, and user-inclusive resolutions rather than vanish after a hack.
If executed well, it could serve as a blueprint for crisis management in a sector still finding its regulatory footing. If mishandled, it will serve as a lasting reminder of how fragile centralized custody remains in crypto’s promise of financial autonomy.
The WazirX recovery closes a major chapter in India’s crypto history while showing that structured accountability is possible in digital finance. The process sets a precedent for future regulation and exchange governance, proving that recovery and reform can coexist in an evolving crypto market.
As India’s crypto ecosystem matures, tools that help investors trade, track, and diversify safely will become essential. This is where Mudrex comes in. Mudrex gives you the easiest and the safest way to buy, sell and trade crypto and crypto futures all from the convenience of your phone. No more worries about your portfolio’s safety. Download Mudrex now and start your Crypto journey with confidence.
Yes. As of October 2025, WazirX has secured final court approval for its recovery plan under the Singapore High Court. The exchange began repayments soon after approval, returning about 85.5% of user portfolios within 10 business days. The remaining 15% is being covered through Recovery Tokens, a structured debt instrument redeemable as additional funds are recovered or generated.
Recovering hacked crypto depends on how the exchange handles security, investigations, and legal coordination. In WazirX’s case, international collaboration with law enforcement and custodians such as BitGo helped freeze a portion of stolen funds. While not every hack leads to full recovery, WazirX’s structured approach shows that partial restitution through legal and financial restructuring is possible when proper custody and compliance systems are in place.
Yes. Under the Scheme of Arrangement approved in October 2025, WazirX is refunding users through a mix of direct crypto and INR payouts and Recovery Tokens for pending balances. Refunds are being distributed in stages to ensure fairness, security, and transparency. Users can verify their repayment details through their WazirX dashboards after the relaunch.
The July 2024 hack resulted in a loss of approximately $234.9 million in ETH and ERC-20 tokens. The breach was traced to a compromised multisig wallet managed through third-party infrastructure. Despite the scale of the loss, WazirX’s recovery and restructuring plan has been recognized as one of India’s most significant crypto recovery efforts, restoring a majority of affected funds and setting a precedent for future exchange accountability.
Krishnan is a Bangalore-based crypto writer dedicated to simplifying complex crypto concepts. He covers blockchain, DeFi, and NFTs, with a focus on real-world asset tokenization and digital trust. Previously he has written on Real Estate related assets for NoBroker. Krishnan holds a B.Tech degree from the College of Engineering Trivandrum.
