WazirX was the largest Indian-origin crypto exchange before July 18, 2024, when a multi-sig wallet exploit drained roughly $235 million in user funds. The exchange has been in legal restructuring since.
What happened
An attacker compromised one of the multi-sig keys controlling WazirX's hot wallet, draining ETH, SHIB, USDT and other assets. Forensic analysis attributed the attack to North Korea's Lazarus Group.
WazirX immediately froze withdrawals and filed for restructuring under Singapore's moratorium-of-claims process. The proceedings have continued through 2025.
User outcome so far
WazirX's restructuring scheme proposed a 55-57% recovery for users via a combination of seized assets, tokenised recovery claims, and a profit-sharing token. The scheme was approved by creditors in 2025 with phased disbursements running through 2026.
Users with INR balances faced their own restoration timeline; INR withdrawals partially resumed but with daily limits.
What this means for the broader market
Indian-origin exchanges lost market share to FIU-registered foreign exchanges (Binance, Bybit, OKX, Coinbase). The hack reinforced the case for Proof-of-Reserves audits, which several exchanges now publish quarterly.
If you have a residual WazirX balance, monitor the official restructuring updates and respond to any creditor-proof-of-claim notices on time.
Key takeaways
- WazirX hack July 2024: ~$235M drained, attributed to Lazarus Group.
- Restructuring scheme proposed 55-57% recovery via tokenised claims.
- Indian exchange market share shifted permanently to foreign FIU-registered venues.
- Proof-of-Reserves audits are now an industry expectation.
