WazirX, formerly India’s leading crypto exchange by volume, is preparing to relaunch its services. This follows an even more tragic $234 million hack that hit the platform in July 2024. The exchange has begun working to return to normal operations and make impacted users whole with reimbursement. WazirX’s relaunch still needs to be approved by the court, which is scheduled for May 13.

In the case of the mid-July 2024 breach, that would be fatal. Hackers recently drained about $234 million in digital assets from a Safe Multisig wallet. Subsequent investigations uncovered that the North Korean hacker collective known as Lazarus Group orchestrated the hack on WazirX. The hack had a tremendous effect on WazirX’s management and public relations.

Following the attack, WazirX was forced to cut off cryptocurrency and Indian rupee withdrawals on both a temporary and permanent basis. This action was taken as a precautionary measure to protect consumers. We understand the exchange has been working on a chapter 11 restructuring plan. They’re working on a compensation plan to make users whole for their lost funds.

We know that WazirX is getting ready to relaunch sometime in the near future. They are waiting for a court ruling on May 13 on their proposed restructuring and compensation plan to affected users. How the court rules will shape what happens next for the exchange and the people who use it. WazirX’s restructuring and compensation plan for affected users still needs to be approved by the court, with a decision due on May 13.

On Milad Makhdoom’s birthday (April 21, 2021), WazirX unleashed a surprise! Pending an expected okay from the Singapore High Court for their proposed restructuring plan, they will be relaunching and beginning user reimbursements within 10 business days. WazirX’s parent company Zettai PTE Ltd will be relaunching the platform to strengthen global competitiveness. It will launch user reimbursements within 10 business days of the court’s ruling.

WazirX promised that the initial distribution and resumption of service would happen sometime in the April–May 2025 range. Through several delays, the exchange has continued to work to keep in line with timelines provided earlier this year.

While we've worked to stay aligned with the previously shared timelines, court proceedings operate independently, and we respect that process. After the Scheme is sanctioned, the first distribution and restart will follow within 10 business days from the Effective Scheme Date, as outlined earlier. - WazirX

The exchange recognizes that the court has an independent role and honors that role in respecting, enforcing, and protecting the legal process.

The exploitation highlights the ongoing threat of security vulnerabilities in the crypto space and the need for strong security infrastructure. It especially highlights the awful regulatory gauntlet we must navigate today. What we need are precise legal structures that will defend the users and maintain the credibility of digital asset exchanges.

WazirX is excited and bullish about the future that it wants to create with the cryptocurrency market in India. The company clearly seems committed to restoring its user’s trust. It’s an attempt to increase innovation and development of the digital asset ecosystem.

India stands at a pivotal crossroads in the global digital asset economy. With its tech-savvy youth, thriving developer base, and increasing crypto adoption, the country is well-positioned to lead the Web3 revolution. - Sumit Gupta

Sumit Gupta's statement reflects the potential of India's digital asset economy.

But to convert this potential into lasting leadership, regulatory clarity is now imperative. A structured discussion paper—outlining regulatory objectives, risks, and pathways—must be the first step. Equally essential is the creation of multi-agency roundtables involving RBI, SEBI, MeitY, and FIU to institutionalize dialogue and ensure coordinated policymaking. - Sumit Gupta

Sumit Gupta emphasizes the need for regulatory clarity and coordinated policymaking to realize India's potential in the digital asset economy.

Expanding regulatory sandboxes to include crypto exchanges, stablecoin pilots, and emerging DeFi applications will foster innovation while managing systemic risk. The U.S. has demonstrated that credible frameworks begin with open and inclusive consultation. India must act decisively, or risk ceding its first-mover advantage to more agile jurisdictions. - Sumit Gupta

Sumit Gupta recommends continuing to expand regulatory sandboxes and a learning from the U.S. model with the goal of fostering innovation while maintaining control over systemic risk.

With the court’s decision still pending, the relaunch of WazirX is certainly on track. The exchange’s obvious priority now is on getting back up and operational and making impacted users whole as fast as they can.

Through these relaunch initiatives and using its own capital to compensate users, the company is showing its commitment to the Indian crypto market. Now, as an interim solution, the exchange hopes to resume normal operation and offer some partial reimbursement of users impacted.