WazirX Reopens After Hack, Users Report Missing Funds
On October 24, 2025, WazirX resumed operations after more than a year offline. The exchange had shut down following a $230 million hack in July 2024. The breach involved a multi-signature wallet managed with Liminal. Thousands of user accounts were frozen while the company restructured under court approval in Singapore.
Users who logged back in found missing coins, blocked withdrawals, and portfolio values that did not match expectations. Many expressed frustration over reduced balances despite assurances from WazirX that most funds were secured.
Restructuring and Asset Rebalancing
WazirX’s parent company, Zettai Pte Ltd, began a restructuring process after the hack. In January 2025, Alvarez & Marsal verified that WazirX controlled around $478.5 million in Net Liquid Platform Assets across BitGo and other wallets.
The company reported distributing 85% of user funds. However, 34% of balances remained frozen due to ongoing investigations. The remaining value would be compensated using Recovery Tokens (RTs). WazirX said it would buy back RTs quarterly based on profits and recovery progress.
Despite this, many users found their account balances smaller than expected when trading resumed.
User Backlash and Withdrawal Issues
Users took to social media, especially X, to criticize the exchange. Complaints focused on perceived mismanagement and lack of transparency. One user called the process “pure betrayal” and accused WazirX of misleading investors.
Withdrawal functions remain restricted for cryptocurrencies. Users receive a message stating crypto withdrawals are unavailable due to evolving regulations. However, deposits and withdrawals in Indian Rupees (INR) and trading remain active.
This policy sparked anger. Some users reported incorrect portfolio values and being unable to convert or sell delisted tokens.
Legal Developments and Frozen Funds
WazirX confirmed to The Hindu that crypto and INR withdrawals depend on user compliance. The company continues to freeze 34% of balances linked to investigations. A spokesperson highlighted cooperation with law enforcement agencies.
On October 28, 2025, the Madras High Court ruled in favor of an investor, Rhutikumari, whose XRP tokens worth ₹1.98 lakh were wrongly frozen. The court clarified that the frozen assets were not related to the hacked ERC-20 tokens and rejected WazirX’s claim of Singapore jurisdiction. This ruling allows Indian users to legally challenge WazirX’s restructuring terms within India.
Trust and the Future of WazirX
WazirX has pledged to compensate users gradually through Recovery Tokens that it will buy back quarterly. However, many investors remain skeptical of the token’s value and the exchange’s ability to regain trust.
The Indian operator, Zanmai Labs Pvt Ltd, now handles all trading and withdrawals. It also enforces Mumbai-based arbitration for disputes. Despite reopening, many users feel the loss of trust remains the biggest barrier for WazirX’s recovery.
The exchange’s survival depends on restoring user confidence by allowing full withdrawals and showing accurate portfolio balances.
