WazirX was once the most popular crypto exchange in India. Millions trusted it to buy and sell digital coins. But after a huge hack in 2024, everything changed. Now, WazirX is in the middle of a long legal recovery process, with the court finally approving its fund return plan. This is the dramatic story of WazirX’s rise, fall, and the uncertain comeback ahead.
In 2018, a young entrepreneur named Nischal Shetty wanted to make crypto easy for everyone in India. He and his co-founders launched WazirX, a platform where people could trade cryptocurrencies like Bitcoin and Ethereum using Indian Rupees (INR). The app was simple, fast, and had low fees, and users loved it.
Shetty also started the #IndiaWantsCrypto campaign on Twitter, which became a viral movement. His consistent advocacy helped crypto become part of mainstream discussions in India.
In 2019, something big happened. Binance, the world’s largest crypto exchange, announced that it had acquired WazirX. This deal boosted trust and gave WazirX access to advanced tech and global liquidity. By 2021, it had over 16 million users and handled billions in trades every year. Its native coin, WRX, saw massive demand during the bull run.
WazirX became known as the “people’s exchange”, with fast onboarding, instant UPI deposits, and a beginner-friendly interface. For millions of first-time investors, it was their gateway into crypto.
As India’s crypto market exploded, newer players like CoinDCX, Mudrex, and CoinSwitch entered the space with more features and stronger user support. By late 2022, WazirX’s response times slowed, withdrawal complaints increased, and WRX prices declined sharply.
Meanwhile, Nischal Shetty shifted focus to Sharedeum, his new blockchain project — and users began feeling that WazirX’s leadership had lost touch.
Between 2021 and 2023, the Indian government tightened its stance on crypto. WazirX was investigated by the Enforcement Directorate (ED) for alleged money laundering and had several bank accounts frozen.
To make things worse, confusion grew over who really owned WazirX, Binance, or its Singapore entity, Zettai Pte Ltd, after both sides gave conflicting statements.
Still, the exchange managed to stay online — until disaster struck.
On July 18, 2024, WazirX’s wallet infrastructure was breached in what experts later called one of the largest crypto hacks in India’s history. Hackers exploited a flaw in its multi-signature wallet system by tricking employees into approving a fake software update.
In minutes, over $235 million worth of crypto was drained, funds linked to North Korea’s Lazarus Group, according to early investigations.
Trading and withdrawals were frozen immediately. Millions of users found their balances inaccessible overnight.
Tensions escalated when WazirX and its custody partner, Liminal, blamed each other for security lapses. Social media outrage followed, and WazirX’s reputation collapsed almost instantly.
With nearly 43% of total assets lost, users and corporate clients sued WazirX across India. Even rival exchanges like CoinSwitch and ZebPay filed recovery claims.
But with no dedicated Indian crypto regulation, the Supreme Court advised users to seek remedies through civil or foreign proceedings. Chaos grew as support teams failed to keep up with the flood of user complaints.
Amid mounting pressure, WazirX’s Singapore parent company, Zettai Pte Ltd, filed for restructuring under Singapore’s High Court in late 2024.
The court allowed WazirX to draft a Scheme of Arrangement, a formal plan to return funds to users. A moratorium protected the company from new lawsuits while it worked out repayment terms.
The proposal outlined partial repayments: a mix of crypto assets and special “Recovery Tokens” tied to WazirX’s future profits.
In March 2025, over 140,000 users and creditors voted on the plan. It was a tough decision: accept losses now or risk losing everything later.
The results were clear: 93.1% voted in favor (94.6% by value). The crypto community accepted partial recovery over total collapse.
Founder Nischal Shetty thanked users for their trust, though confidence remained low. WazirX promised to rebuild and hinted at launching a revamped platform once the court process ended.
After multiple hearings through mid-2025, the Singapore High Court officially sanctioned WazirX’s restructuring plan on October 13, 2025. The company filed with ACRA (Accounting and Corporate Regulatory Authority) on October 15, finalizing the court-approved scheme.
With that, WazirX cleared the last legal hurdle to begin repaying users.
ALSO READ: WazirX Latest News: Court Updates & User Payouts Explained
Following the court sanction, fund distribution is expected to start in phases from late October 2025.
Here’s how payouts are structured:
Trading remains suspended for now, but exchange reactivation is expected in early 2026, subject to regulatory clearance under Singapore’s Digital Token Service Provider (DTSP) license.
Today, WazirX is no longer the market leader it once was. While the court’s approval has renewed some hope, user trust remains fragile. Many have already moved to newer, better-regulated platforms, while long-time users are simply waiting for their refunds.
The WazirX story is now more than a cautionary tale; it’s a turning point. From record-breaking success to courtroom redemption, it shows that trust is the only real currency in crypto. Once lost, it takes years and court orders to win back.
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WazirX was one of India’s biggest crypto exchanges, launched in 2018 to make crypto trading easy and accessible using INR. It became widely trusted after its acquisition by Binance in 2019.
Starting in 2021, WazirX was investigated for alleged money laundering. The situation worsened after unclear ownership claims by Binance and stricter government scrutiny.
Hackers exploited WazirX’s wallet system on July 18, 2024, stealing $230 million worth of crypto. The breach was linked to a suspected North Korean hacker group.
Users were furious after losing access to their funds. Some sued the company, while others shifted to rival exchanges. Eventually, over 140,000 users voted on a recovery plan involving partial repayment.
WazirX is still in legal proceedings in Singapore and is trying to recover. It plans to repay 85% of user funds over time, but many users have lost confidence in the platform.
![Can I Withdraw From WazirX Now? [Latest Update]](https://learn.mudrex.com/wp-content/uploads/2025/05/12-285x190.webp "Can I Withdraw From WazirX Now? [Latest Update]")
