Navigating the Fallout: WazirX’s Struggle to Recover After a $230 Million Hack
In 2024, Indian cryptocurrency exchange WazirX was hit by a massive cyberattack stealing approximately $230–$235 million. Since then, the company has been embroiled in legal battles, restructuring efforts, and major operational decisions as it seeks to repay affected users and restore its reputation. The saga, centered largely around the Singapore High Court, reflects the intricate and often fragile nature of cryptocurrency exchanges navigating regulatory frameworks, creditor demands, and recovery logistics after large-scale security breaches.
—
The Hack and Immediate Consequences: A Crisis Unfolds
In July 2024, WazirX became a high-profile victim of a cyber heist that resulted in the loss of over $230 million. This event immediately shook user confidence, triggered regulatory scrutiny, and left creditors and users uncertain about the future of their locked funds. The scale of the hack placed WazirX under enormous pressure to rapidly implement a credible recovery and repayment plan.
The hack’s aftermath involved complex legal procedures to safeguard remaining assets and establish a framework for restitution. WazirX froze certain wallets containing stolen assets and sought to negotiate a restructuring plan under Singapore’s judicial system, where the company’s parent entity Zettai Pte Ltd was engaged legally.
—
Singapore High Court: The Legal Battleground
The Singapore High Court became the focal point for WazirX’s efforts to regain operational footing and honor creditor claims. Initially, in early 2025, the court showed openness to WazirX’s restructuring proposal, granting limited approvals that suggested a path toward user repayments and business continuity. For instance, as of January 23, 2025, WazirX had secured tentative court approval to proceed with repayments after outlining a comprehensive restructuring plan that included issuing tradable Recovery Tokens and transitioning toward a decentralized exchange model.
However, optimism dimmed as the court subsequently rejected key restructuring plans. The most recent rulings in mid-2025 have blocked WazirX’s repayment proposal citing issues such as insufficient transparency, concerns over regulatory registrations, and questions about corporate structure legitimacy. This legal rebuff significantly delays the timeline for compensations, leaving creditors in limbo with payouts postponed indefinitely.
Specifically, the court noted confusion about the relationship between WazirX’s operating entity and its registration status in India—a factor complicated by Zettai Pte Ltd not being registered under India’s Financial Intelligence Unit (FIU). Such regulatory discrepancies contributed to the court refusing approval of the restructuring.
—
Operational Shifts and Strategic Responses
Facing these judicial setbacks, WazirX has begun relocating its operations to Panama and rebranding under a new corporate entity. This move appears aimed at resetting the business framework, potentially offering a jurisdiction with more favorable or clearer regulatory guidelines for crypto operations.
Meanwhile, despite legal challenges, WazirX publicly reiterates its commitment to creditor repayment and platform stability. The exchange continues to file affidavits with the court and awaits further hearings scheduled, such as a notable hearing extended to June 6, 2025, in hopes of securing renewed moratoriums and advancing a binding scheme of arrangement.
—
Implications for Creditors and the Crypto Community
The unfolding scenario poses significant challenges for WazirX customers and creditors. With the court blocking repayment plans that promised liquidation and withdrawals, users face uncertainty over if and when they can recover their funds. Industry analysts estimate full recovery is unlikely in the near term, and creditors must brace for protracted legal battles or partial payouts.
Moreover, the case underscores broader systemic issues plaguing crypto exchanges: regulatory ambiguity, cross-border jurisdictional complications, and the inherent risks of centralized custodial platforms in safeguarding digital assets.
—
Looking Ahead: What Could Unlock WazirX’s Revival?
WazirX’s recovery hinges on navigating meticulous legal processes, enhancing operational transparency, and forging agreements between creditors and courts. Approving a restructuring plan that balances user restitution with sustainable business operations is critical. Potentially, innovations like Recovery Tokens and decentralized exchange implementation could align creditor interests with platform growth.
Success also depends on regulatory compliance, as highlighted by the court’s concerns regarding Indian registration and financial oversight. Addressing these compliance gaps may smooth legal pathways and restore trust.
Finally, the relocation to Panama signals a strategic pivot—if executed with strong governance and legal clarity, it may open fresh opportunities unshackled from prior regulatory complications.
—
Conclusion: A Complex Journey Through Legal and Operational Turbulence
WazirX’s experience after the $230 million hack is a case study in the complex interplay between cyber risk, regulatory environments, and corporate restructuring within the volatile crypto ecosystem. The Singapore High Court’s recent rejection of its repayment plan is a setback yet not an end. WazirX’s efforts to reorganize, pursue legal channels, and reimagine its business model reflect resilience, albeit amid an uncertain future for many affected users.
This saga highlights the importance of robust governance, clear cross-border regulatory compliance, and timely communication in earning back stakeholder confidence post-crisis. For creditors caught in the middle, patience and vigilance remain vital as they navigate an evolving legal landscape that will shape the fate of their lost assets and the broader crypto exchange industry.
