On July 18, 2024, WazirX faced the biggest crisis in its history — a massive security breach that resulted in over $230 million worth of assets being drained. The exchange immediately suspended operations, triggering confusion and panic across India’s crypto community.
A year later, WazirX stands not defeated but determined — with a court-sanctioned scheme nearing completion, and a proposed 85% recovery for affected users. That’s not just a milestone for WazirX — it’s a potential precedent for the wider crypto industry.
Here’s a look at what the exchange got right over the past 12 months — and why its recovery efforts could mark a turning point for user protection in Web3.
Acknowledging the Cyberatack — With Speed and Transparency
Unlike many platforms that delay disclosure after a breach, WazirX acknowledged the cyberattack within 24 hours, and proceeded to give a day-wise report and update throughout the year.
On July 19, it announced the freeze of all wallets and trading services. In the days that followed, the team engaged with international institutions for forensic investigation.
This early response, coupled with immediate engagement with India’s Financial Intelligence Unit (FIU), helped prevent further damage and signaled an intent to cooperate — not deflect.
Choosing a Legal Route Over Denial
After the initial damage assessment, WazirX’s parent entity Zettai Pte. Ltd. chose to pursue a restructuring scheme under Singapore law. This involved submitting a proposal to affected users, gaining supermajority approval, and filing it in court for sanction.
The plan wasn’t rushed. It went through months of creditor consultations, compliance reviews, and risk upgrades.
When the court initially dismissed the scheme in June 2025, Zettai filed a timely application for clarification — and the judge reversed her own ruling weeks later, allowing a revote to proceed.
Legal processes can be frustrating, but they offer protection. In this case, they protected user interest and ensured no shortcuts were taken.
Rebuilding With Risk in Mind
WazirX didn’t just patch systems — it rebuilt them. By early 2025, the platform had completed a full overhaul of custody infrastructure, deployed new risk tools, and completed external audits. Singapore’s Monetary Authority (MAS) confirmed that Zettai’s operations did not breach the Financial Services and Markets Act.
Security isn’t just about code — it’s about culture. The company appears to have learned that lesson the hard way, and responded accordingly.
Transparent Voting & Court Oversight
Unlike shadowy backroom deals, this scheme was built around due process:
93% of voting users approved the original plan.
The Singapore High Court is supervising implementation.
A Committee of Creditors was formed to oversee governance, not WazirX alone.
This level of creditor participation is rare. It demonstrates a shift from founder-led decision making to community-led resolution.
A Timeline of Resilience
July 18, 2024 — Cyberattack occurs; exchange suspends services.
July 19–25 — Forensic firms engaged; damage assessment begins.
August — FIU, law enforcement, and regulators notified.
September — Singapore court grants four-month moratorium under
Section 64 of the IRDA. Public townhalls and FAQs launched. Cross-exchange cooperation leads to some frozen funds.
October — Restructuring roadmap shared.
Jan–Feb 2025 — Security overhaul completed.
March 2025 — Scheme filed in Singapore court.
April-June 2025 — 93% user approval; initial court rejection.
July 2025 — Court reopens path after clarifications; revote underway.
Industry Context: The Crypto Recovery Scorecard
Most platforms go silent after a cyberattack. Some flee jurisdictions. Others hide behind bankruptcy courts for years. WazirX chose a harder, more transparent path — and it shows.
Why It Deserves Community Support
No recovery plan is perfect. But perfection was never on the table. What WazirX is attempting is rare in crypto — full regulatory engagement, court-approved payouts, and an equitable recovery.
The path hasn’t been smooth. There were delays, questions, criticisms — and rightly so. But the big picture matters: There is a possibility of 85% of assets being returned through a legal, supervised process that puts users first.
What Comes Next?
The final revote is underway. If approved, distributions will begin shortly after. That puts real money back in the hands of users within weeks — not years.
This is the moment the WazirX community has waited for. And the world is watching.
Top comments (0)