WazirX to Relaunch Trading with New 85% Recovery Plan

After a 16-month shutdown caused by a devastating hack, India’s largest crypto exchange is betting on a court-approved recovery plan and zero-fee trading to bring users back.

WazirX, India’s largest cryptocurrency exchange by volume, announced Thursday, that it will resume trading operations, ending a 16-month freeze initiated after a $230 million security breach. The relaunch follows the Singapore High Court’s approval of a restructuring plan that aims to make users whole by recovering 85% of their funds.

In an official blog post, the company confirmed that trading will restart in phases beginning October 24, 2025. The move marks a critical test of user trust for the exchange, which was crippled by a sophisticated hack in July 2024 that drained nearly half of all user assets.

A Court-Sanctioned Path to Recovery

The resumption of services was made possible after the Singapore High Court sanctioned a restructuring scheme for WazirX’s parent company, Zettai Pte Ltd., on October 13, 2025. The plan received overwhelming support from creditors, with 95.7% by value approving it in an August 2025 revote.

Under the terms of the plan, affected users will receive 85% of their pre-hack balances. The distribution will be made in two parts: 55% paid out in stablecoins and another 30% issued as “Recovery Tokens,” which can be redeemed against the exchange’s future profits over a three-year period.

The Lazarus Group Hack and Multisig Failure

WazirX halted all trading and withdrawals on July 18, 2024, after hackers drained $230 million in various cryptocurrencies, primarily from its SHIB token pool. On-chain analysis firms, including Elliptic and Crystal Intelligence, attributed the attack to the Lazarus Group, a state-sponsored hacking syndicate linked to North Korea.

According to reports, the attackers compromised WazirX’s 9-of-12 multisig wallet by using social engineering to trick key holders into signing a malicious transaction. The breach highlighted the vulnerabilities of multisignature security protocols when faced with sophisticated, targeted attacks.

WazirX Phased Relaunch and New Security Measures

To restore confidence, WazirX is implementing a series of operational and security upgrades. The exchange announced a partnership with BitGo, which will provide institutional-grade, insured custody for user assets.

The relaunch will be gradual. Deposits for Indian rupees and crypto will open on October 24, with trading pairs activated over the following days. Full withdrawal capabilities will be restored over a 10-day period pending security audits. To incentivize users to return, WazirX will offer zero trading fees for a minimum of 30 days.

In the company’s announcement, WazirX CEO Nischal Shetty stated, “Our focus is only YOU… We will do whatever it takes to help you be successful.” While some community members on social media expressed relief, others remained skeptical about withdrawal timelines and the platform’s long-term security. Analysts at Elliptic praised the 85% recovery figure as a pragmatic outcome but noted that “users need ironclad proofs-of-reserves to return.”

ChainStreet’s Take

WazirX’s plan to recover 85% of user assets and resume trading signals a rare comeback in India’s turbulent crypto market, where regulatory pressure and exchange collapses have tested user trust. The move could restore some confidence among retail traders burned by past outages, but its success hinges on transparency and sustained liquidity once operations restart.