WazirX Investors Eager for Closure a Year After Cyberattack

Quick Summary

• Incident: WazirX faced a cyberattack on its multi-signature wallet in July 2024, resulting in the loss of assets worth over $230 million. The breach was attributed to North Korean cybercriminals.
• Responsibility dispute: Both WazirX and Liminal blamed each other for the security vulnerability that led to the hack.
• initial Response: Criticism arose due to delayed communication by WazirX and confusion among users after funds were locked post-breach.
• Partial Recovery: In January 2025, $3 million of stolen assets were frozen as part of initial recovery efforts.
• Restructuring Efforts: A restructuring plan was put forward in Singapore courts despite WazirX’s primary user base being Indian.

– 93.1% of creditors approved an initial proposal.
– Singapore High Court rejected earlier restructuring but has now allowed a revote based on amendments to the plan.
– Zanmai India entity will manage asset distribution upon legal approval in compliance with updated operational frameworks.

• Openness Measures: the company claims proactive actions such as engaging cybersecurity experts, hosting public forums, and collaborating with reputable custodians like BitGo and Zodia Custody for future asset security.

Indian Opinion Analysis

The incident highlights vulnerabilities in managing crypto-assets globally and raises concerns about accountability and jurisdictional responses. While WazirX has taken steps toward recovering user funds, criticism regarding delayed action reflects gaps in trust between platforms like these and their customers.The decision to take legal processes outside India-despite being marketed as an Indian exchange-raises questions about regulatory alignment within India’s financial governance systems for cryptocurrencies. Stronger frameworks may be needed domestically to ensure swift restitution mechanisms for investors impacted by breaches.

WazirX’s approach-including transparency efforts via public townhalls-is constructive but does not entirely address customer grievances stemming from prolonged delays or volatile market conditions impacting asset values during this period.

This situation underscores India’s broader need to formalize regulations on crypto exchanges hosting domestic investments while balancing global cooperation against cyber threats targeting financial ecosystems.

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