WazirX Relaunches with Zero Fees After $234M Hack

WazirX’s path to reopening follows months of legal proceedings and creditor negotiations after the devastating July 2024 hack that saw $234 million stolen from the platform. The exchange’s restructuring plan received overwhelming support from creditors, with 95.7% voting in favor of the proposal that received formal approval from Singapore courts. This legal backing allows the platform to resume services for its 6.6 million users who have been locked out of their accounts since the security breach occurred.

The recovery process involves issuing Recovery Tokens to creditors, with distributions scheduled to begin once operations resume on October 24. According to Edul Patel, CEO of competing Indian crypto exchange Mudrex, investors are estimated to regain access to approximately 4000 crore rupees through this structured recovery system. Patel noted that while the 15% shortfall remains a concern, the transparent communication and organized approach demonstrate “a strong intent to rebuild trust, not only on the platform but also in the industry.”

WazirX is implementing a carefully staged return to full functionality, with trading resuming in phases rather than all at once. The platform will enable approximately 25% of tokens each day, beginning with crypto-to-crypto trading and the USDT/INR pair before gradually adding other INR markets. The exchange aims to achieve complete operational restoration by Monday, providing users with a controlled re-entry into the platform’s ecosystem.

Security enhancements form a cornerstone of the relaunch strategy, with WazirX partnering with BitGo to provide insured, institutional-grade custody solutions for user assets. Founder Nischal Shetty emphasized this partnership as a key upgrade following last year’s breach, representing a significant step toward rebuilding user confidence. The zero trading fee structure across all markets serves as an additional incentive to attract users back to the platform amid intense competition in India’s crypto exchange landscape.

INR withdrawals have already been activated, with crypto trading and withdrawals scheduled to commence on October 24. However, the platform faces operational challenges, including re-KYC requirements that are causing delays for some investors. CA Sonu Jain, chief risk and compliance officer at 9Point Capital, noted that many of his clients remain unable to withdraw INR despite the platform’s claims that withdrawal functionality is live.

Despite the structured recovery plan, user reactions have been decidedly mixed, with several investors reporting receiving significantly less than the promised 75-80% of their frozen balances. Crypto influencer Pushpendra Singh told Decrypt that “some users on X are reporting they’ve received only about 30% of their funds or are facing calculation discrepancies.” Singh emphasized the urgency of addressing these complaints, noting that “users have already waited long enough to get their funds back.”

The relaunch has sparked criticism across social media platforms, with one user questioning the exchange’s operations: “Why the **** they asking for deposit before even returning the users who lost money for no reason. What kind of scam is this? And what gives them this strength to even do it?” This sentiment reflects broader concerns about the platform’s transparency and communication practices following the hack.

Industry experts have raised fundamental questions about governance and accountability. CA Sonu Jain pointed to “opacity, unclear ownership, inconsistent communication, and no verifiable proof of reserves” as core issues that plagued WazirX before the hack. He warned that “unless the new entity publishes independently verified audits and clear accountability for prior user funds, this ‘fresh chapter’ risks repeating the same governance failures under a new rebranded banner.”

Legal scrutiny continues beyond the Singapore court proceedings, with the Delhi High Court ordering Zettai in August to produce its acquisition agreement with Binance and disclose restructuring scheme details. This ongoing judicial oversight reflects persistent creditor demands for transparency following the massive security breach and subsequent platform closure.