Almost 9 months have passed since the morning of July 18, 2024, when India’s largest crypto exchange, WazirX, lost ₹2,000 crore in a cyber hack that brought the country’s entire Web3 dream crashing down.
A sum of ₹2,000 crore or $234.9 million, in the form of cryptocurrencies, is money that belonged to 4.4 million ordinary Indians who dared venture into the exciting yet volatile world of crypto trading.
While the hacked amount has vanished into thin air, the WazirX management has suspended its platform and held a whopping ₹2500 crore fund of Indian users for the past nine months.
The cyber attack against WazirX has been an eye-opener for many in the crypto community. While many speculations have been made and theories have been proposed regarding who orchestrated the hack, the users of WazirX were left particularly hurt in the manner they have been left on their own by WazirX management, Indian police, government, judiciary, and the media as the “so called” fourth pillar of democracy.
Despite the hack amount being massive, the case has not been picked up by the Indian opposition or even the Union Finance Ministry. The lack of regulations in the crypto industry and the negative stereotypes associated with it have exacerbated the problems faced by WazirX users, who have gradually begun to feel as though all avenues are closed to them.
New Beginning or a “New Conspiracy”
On April 7, 2025, WazirX made an announcement. Total 93.1% of voting creditors had agreed to a new restructuring plan in Singapore—a plan that promises up to 85% recovery of lost funds by mid-2025. The rest, perhaps in another 2-3 years.
The plan still needs the greenlight from the Singapore High Court. The hearing is set for May 13, 2025. If approved, the platform will relaunch. A new decentralized exchange (DEX) is planned, with hopes of monetizing via partnerships and new product launches. The dream of a comeback is being carefully stitched together.
But there’s hesitation. Users aren’t clapping. They’re burnt. Watching and Wary!
Because this isn’t just a story of theft.
It’s like a full-blown commercial film—a rise, a fall, and a brutal unmasking.
WazirX: Birth of North Star
WazirX wasn’t always controversial. For a long time, it was the crown jewel of India’s crypto industry. Sleek UI, strong community, and a founder who knew how to sell a dream—Nischal Shetty. He was India’s ‘CZ’, a Web3 evangelist who brought crypto into mainstream dinner-table conversations.
He built WazirX like a movement. For lakhs of Indians, it wasn’t just an app—it was the front door to the blockchain revolution. He was everywhere- on podcasts, panels, and news primetime.
And he delivered. WazirX made trading simple. It made it local. In a space full of global noise, WazirX sounded like home. But success, when not grounded in accountability, often turns fragile.
Fall of WazirX
Even as WazirX was making headlines, it was fighting shadows behind the scenes. Regulatory grey zones. Ownership disputes with Binance. Questions around compliance and security. But nothing prepared anyone for what happened on July 18, 2024.
In one calculated move, hackers—allegedly tied to North Korea’s Lazarus Group—exploited a vulnerability in WazirX’s multi-sig wallet. An amount of $235 million was siphoned off. Just like that!
Withdrawals were frozen. Trading paused. Support vanished. People woke up to empty dashboards and zero updates. It didn’t matter whether someone had ₹5,000 or ₹50 lakh on the line—everyone was hit the same.
Blame Game – Then, Silence
Instead of owning up, the chaos triggered finger-pointing.
WazirX blamed Liminal, the wallet custodian. Binance denied operational control. Nischal Shetty posted cautiously worded statements. The ownership debate reignited—and users? They were lost in the shuffle.
The media picked up the story. For a while. Then dropped it.
The government was quiet. Law enforcement? Slower than ever. Courts dismissed petitions without hearings. Users tried everything: from filing RTIs to reaching out to MLAs. Nothing moved.
ED. NIA. SEBI. FIU. Everyone said they were “monitoring.” No one delivered.
Unmasking: Not just an exchange but entire system
This wasn’t just a hack. It was a test of character—for everyone.
The silence of institutions spoke volumes. Even as WazirX users cried for help, India’s crypto ecosystem looked away. No one rallied. No one marched. No one protested.
Nischal’s image took a hit—but so did the credibility of media, regulators, and the broader Web3 scene. The incident wasn’t just about a stolen bag. It was about stolen trust.
Where do we stand now?
WazirX wants to rebuild. But users are no longer dreamers. They’re realists. Burned ones.
There is a plan on paper. A vote passed. A court hearing is on the horizon. A new DEX, partnerships, and vague promises. It might even work. But no one’s ready to celebrate. Not yet.
Because everyone remembers how fast it all fell apart.
And now, after everything, let’s return to that day when it all started.
WazirX’s Full Story
Let’s step back and trace how WazirX got here. It’s essential to trace the genesis of WazirX, its subsequent journey alongside India’s crypto story, and its ultimate collapse to understand why we are where we are.
2017: Long Vision, Baby Steps
Back in 2017, three budding entrepreneurs—Nischal Shetty, Siddharth Menon, and Sameer Mhatre—decided to take a big swing. All three had unique sets of skills and stellar CVs to prove their mettle to the crypto industry.
Their goal was crystal clear: build a straightforward, dependable, indigenous crypto exchange for Indian users. à la Binance but it’s the “desi” version.
Initial Stage, Early Development
Team WazirX had their priorities set from Day 1: make the platform simple to use with hassle-free INR deposits and withdrawals. Back in 2017, Indian crypto users depended on global exchanges like Binance or Bittrex, but they had no INR support and their Know Your Customer (KYC) process was a nightmare.
By the end of 2017, WazirX had a working beta, and its Telegram community was growing fast.
March, 2018: WazirX’s Official Launch
March rolled in, and WazirX officially launched. It arrived on the Indian crypto scene like an oasis, a much-needed home turf for the desi crypto nerds out there. The exchange supported every major cryptocurrency, including Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP), plus INR trading pairs—which was a game-changer for Indian users.
The interface was clean, fast, and actually worked the way people expected. Support was responsive too, which made a big difference early on.
April, 2018: WazirX hits first Roadblock with RBI ban
Just a month after the widely anticipated launch of WazirX, the Reserve Bank of India made a shocking announcement: all private and public banks were to sever ties with all crypto businesses, and cryptocurrencies were prohibited as legal tender.
Overnight, every single exchange in India—including WazirX—was staring down an uncertain future. For a young startup that had just introduced, it was a punch in the gut.
WazirX Maneuvers Crypto Ban with Launch of P2P Trading
WazirX responded to the RBI ban with India’s first automated P2P trading platform, allowing users to trade USDT for INR directly with each other, while WazirX acted as a trusted escrow. It was an innovative workaround that saved the business from an imminent collapse.
Nischal Shetty and Rise of #IndiaWantsCrypto
Co-founder and WazirX poster boy Nischal Shetty launched the #IndiaWantsCrypto campaign, tweeting daily from his X (formerly Twitter) account to advocate for crypto regulations.
His persistence turned him into the de facto voice of Indian crypto users and soon, hundreds joined in, demanding the Indian Finance Ministry vis-a-vis the RBI to budge.
Launch of WRX, Native Token of WazirX
By 2019, WazirX started dropping early hints about launching their own utility token—WRX. To build early traction, they gave away free WRX through a mix of referral bonuses and airdrops.
It was a smart move that helped them create a loyal base even before the token officially went live.
November 2019: Binance acquires WazirX but no Clarity on Deal
Binance, the world’s largest crypto exchange, announced it was acquiring WazirX. The news spread like wildfire, and the Indian crypto scene lit up with excitement. For many, it felt like a huge validation—not just for WazirX, but for the future of crypto in India.
However, the actual acquisition terms were never fully disclosed. Who controlled what—wallets, infrastructure, compliance—remained unclear. Still, public perception leaned in favor of trust.
2020: Coronavirus Pandemic turns Crypto into Household Name
The global coronavirus pandemic and subsequent lockdowns offered immense opportunity for the crypto industry to flourish. WazirX capitalized on this with aggressive onboarding, reportedly adding over 100K users monthly.
By February 2020, WRX token was launched via Binance Launchpad. It saw an explosive debut, gaining over 8x on the first day. The hype around WRX further boosted WazirX’s visibility.
High Trading Volumes with Downtimes and Delays
By mid-2020, WazirX volumes were among the highest in India. It also became one of the most downloaded finance apps on Play Store. Despite the growth, the platform faced criticism as users started reporting withdrawal delays and sudden downtimes during price rallies. These issues raised questions about liquidity and backend infrastructure.
Confusion over who runs WazirX, Nischal or Binance?
With Binance’s name often attached but little clarity on the deal, speculation grew: was Binance actually running things, or was it still Shetty and team? This confusion would return to haunt them.
2021: Crypto Ban Lifted, WazirX sees Record Growth
The Indian Crypto community received a major breather when the Supreme Court struck down the RBI’s banking ban. WazirX was quick to restore direct INR deposits, and trading volumes skyrocketed. The user count crossed 6.5 million, while the monthly trading volumes touched $6 billion. WazirX became India’s most-used crypto exchange by active traders and volume. Nischal was living the dream, and he knew it.
June 2021: Enforcement Directorate (ED) comes Knocking In
The Enforcement Directorate, India’s premier financial crime investigative agency, accused WazirX of laundering ₹2,790 crore through suspicious transactions linked to Chinese loan apps. As an immediate penal action, ₹64.67 crore worth of funds was frozen.
The exchange management claimed it had no control over how users used their wallets and that the flagged transactions were P2P-based. But the damage to its image was already done.
December 2021: Raid on WazirX premises by Goods and Services Tax (GST) department
Later in the year, the Directorate General of GST Intelligence (DGGI) raided WazirX’s premises and found alleged tax evasion worth ₹40.5 crore. This was another credibility hit and suddenly, WazirX was on shaky grounds, trying hard to retain credibility among Indian users while maneuvering complex Indian laws.
2022: Binance’s CZ publicly disowns WazirX
The crypto world was stunned when Binance CEO CZ tweeted that Binance never completed the WazirX acquisition. He said Binance only provided wallet services but didn’t own or operate WazirX. He further advised all Indian users of WazirX to transfer their funds to Binance at the earliest.
Nischal Shetty fires back
Nischal Shetty fired back, stating that Binance had full control over cloud servers, wallets, and KYC data. The two sides issued contradictory statements, leaving users totally confused.
ED Probes P2P Transactions
The ED escalated its probe into P2P deals, alleging that WazirX’s model lacked proper KYC and allowed money laundering across borders. Questions were raised about compliance and user monitoring practices.
Questions Rise over Liquidity
Amid this regulatory pressure, users began reporting sluggish withdrawals and poor customer support. Social media buzzed with warnings about a possible liquidity crunch at WazirX.
Binance Cuts Off Off-Chain Transfers
By August, Binance officially disabled off-chain transfers to and from WazirX accounts. It was a clear distancing move—and users were left stranded between two platforms, pointing fingers.
WRX Crashes and Market Share Falls
The WRX token nosedived, and daily trading volumes plummeted. WazirX lost significant market share to CoinDCX and global players like KuCoin, who were gaining popularity in India.
2023: WazirX dethroned, Nischal finds new pursuit in Shardeum
By 2023, WazirX had slipped from its throne. It was no longer India’s top exchange. Trading volumes declined sharply as users migrated to competitors like CoinDCX and KuCoin and global players like Bybit and Coinbase, which were offering smoother experiences and better incentives.
Community Frustration Grows
Active users and long-time WRX holders voiced concerns across social media. They flagged issues like slow customer support, unresolved withdrawal problems, and lack of platform updates. Despite this, WazirX made a few public efforts to rebuild trust.
Stalled Product Development
There was noticeable stagnation in the product roadmap. While rivals were introducing new features—like earn programs, staking, and NFT marketplaces—WazirX’s dashboard and trading engine remained largely unchanged, and mobile app bugs persisted.
Shetty’s Shift to Shardeum
In the midst of all this, co-founder Nischal Shetty began shifting his focus to Shardeum, a new layer-1 blockchain project he co-founded. While the project received a positive reception, many WazirX users saw it as abandonment. Shetty no longer actively promoted or defended WazirX like before.
WRX Token Left in Limbo
The WRX token suffered heavily. With no clear utility roadmap, poor communication, and zero Binance support, the token’s price kept falling. Holder sentiment hit a low, especially among those who were early backers expecting WRX to power the future of WazirX.
July 2024: $2000 crore Hack and Crisis Unfold
On July 18, 2024, WazirX was hit by a massive $234.9 million hack, sending shockwaves through India’s crypto ecosystem. WazirX team was caught completely off-guard as it was Cyvers Alerts, a web3 security firm that first flagged the exploit. It reportedly took 4 hours for WazirX to even acknowledge the hack and loss of public funds.
How did $2000 crore hack unfold?
The $234.9 million hack was orchestrated in a sophisticated manner where the alleged hacker first gained access to WazirX exchange through fake credentials and then drained cryptocurrencies from a hot wallet of WazirX prompting the management to use one of their cold wallets to refill the former. It was here that the hacker/s gained access to a multi-signature cold wallet of WazirX and drained its wealth within minutes.
The hacker reportedly dumped millions in UNI, LINK, and SAND tokens and even sent a hacked WazirX token to Ethereum’s Vitalik Buterin.
Utter chaos and blame game begin
As chaos unfolded, WazirX suspended trading and blamed Liminal Custody, a third party security partner for their failure to stop the breach, thereby sparking a blame game. On their behalf, Liminal Custody claimed that the cold wallet under their custody required signatures of five persons, all belonging to WazirX management.
WazirX also tried to shift responsibility of its 4.4 million users to Binance, since the exchange was technically acquired by it in 2021. The claim was rejected outright by Binance.
FBI steps in, North Korea’s Lazarus Group emerges as suspected hackers
The U.S.-based Federal Bureau of Investigation (FBI) contacted WazirX over potential ties to North Korea’s Lazarus Group, an infamous group of hackers allegedly supported by Kim Jong regime.
Amid industry outrage, WazirX launched a public poll on recovery options, promised a $23M bounty, and filed a police complaint with Delhi Police’s Special Cell IFSO.
Arkham and rival Indian exchanges assured users their funds were safe. Humor and memes flooded the internet, but investor sentiment took a hit—especially as Shiba Inu dropped 10% due to the breach.
August 2024: WazirX Hack drama gets bigger
After the massive $230M hack on July 18, August turned into a month of chaos for WazirX. Victims demanded answers, while the exchange kept delaying withdrawals despite restoring balances mid-month.
Liminal confirmed that WazirX had full access before funds were moved, but later distanced itself, blaming WazirX’s security.
The situation worsened with NCLT petitions and legal threats. On August 26, WazirX resumed partial INR withdrawals, but only 66% was accessible. Nischal Shetty, who co-founded the exchange, blocked critics and denied involvement.
Investors continued pressing WazirX, accusing it of using ₹100 crores of user funds for legal costs. As Binance, CoinDCX, and CoinSwitch distanced themselves, many feared WazirX was heading towards imminent collapse.
September 2024: WazirX claims it’s going to Singapore Court for its 4.4 million users
The $234.9 million hack against WazirX led to several startling revelations for the Indian users. For starters, Nischal informed them that the WazirX exchange ownership has been in dispute between Binance and ‘Zanmai Labs’ the Indian parent entity of WazirX and no one actually knows who owns the exchange.
Moreover, to the shock of users, Shetty also informed them that for now, “in protest,” WazirX exchange is being handled by Zettai Pvt Ltd, the Singapore-based parent entity of WazirX, which is also managed by him.
WazirX floats restructuring plan for moratorium
To make matters more complicated, Shetty announced that the WazirX management is approaching the Singapore court to seek a way out of the hack-induced crisis for its 4.4 million Indian users.
Judicial Commissioner Kristy Tan of Singapore High Court was assigned the case of WazirX, represented by Kroll, their legal partner in Singapore.
WazirX presents controversial 45% loss sharing formula for users in Singapore Court
WazirX faced significant criticism after revealing in Singapore Court that only 0.01% of its users supported its restructuring plan following a ₹2,000 crore hack in July. Additionally, the exchange announced it would not share past profits with affected users, proposing a compensation plan where users would bear a 45% loss on their investments.
September 26: Moratorium Plan approved by Singapore Court
Despite vehement pressure from users, the moratorium plan proposed by WazirX gets approval by the Singapore High Court. Judicial Commissioner Kristy Tan also puts four conditions on the management, namely:
- Publish Wallet Addresses of WazirX through court affidavit.
- Public Book of Accounts of WazirX through court affidavit.
- Respond to users’ queries and grievances.
- Run a poll for seeking support of restructuring process on an independent platform.
October 2024: Users approach Delhi High Court for Intervention
Meanwhile, a group of WazirX users approached Delhi High Court for its intervention in the WazirX hack case, demanding an investigation against the management on grounds of negligence and mismanagement. The Delhi HC on October 18 issues notices to Delhi Police, ED and FIU, asking whether a probe could be launched against WazirX.
Delhi Police arrests an accused from West Bengal who acted as mole
Meanwhile, the Delhi Police’s Special Cell arrested an accused named SK Masud Alam from Mednipur district of West Bengal, who had allegedly sold credentials of WazirX account to a man named “Hasan”, who used the account to infiltrate the exchange and commit the hack on July 18.
WazirX forms committee of creditors
WazirX announced it is setting up an anonymous ten member committee of creditors who will represent all 4.4 million users of the exchange. The move was again criticized by users, as WazirX did not reveal the selection criteria behind choosing members of this committee.
WazirX publishes 2.4 lakh public wallet addresses of their exchange consumers
Acting on the instructions of the Singapore High Court, the WazirX management published over 2,40,000 wallet addresses of their users on their blogsite. This move was criticized by many in the crypto world as investigations revealed that WazirX had submitted dubious wallet data to the court.
While many wallet addresses were repeated in the list, hundreds of them had zero balances.
CoinSwitch sues WazirX
Meanwhile, CoinSwitch, another India based exchange, sued WazirX in Singapore HC for holding back their funds.
CoinSwitch CEO Ashish Singhal released a live tracker of the wallet addresses of WazirX and claimed that the xchange transferred over Rs 1067 crore to three different crypto exchanges post the hack and two out of them-Bybit and Kucoin- were unregistered in India.
Also Read: All Out War Breaks Out as CoinSwitch Drags WazirX to Court
December 2024: CZ breaks his silence on WazirX, says “I told you so”
Meanwhile, Changpeng Zhao (CZ) the founder of Binance, finally broke his silence on WazirX hack and ownership controversy and claimed that he had already warned WazirX users about the impending threat of using the contentious exchange, despite a public fallout.
Delhi Police files chargesheet in the case, says investigation stuck due to coup in Bangladesh
The Delhi Police, that is investigating the WazirX hack, filed a chargesheet against the arrested accused SK Masud Alam.
An exclusive report by The Crypto Times revealed that the actual mastermind of the hack, who bought credentials from SK Masud Alam, is hiding in Bangladesh and the police cannot enter the country due to ongoing tensions between India and its neighbour after a coup and ouster of former Bangladesh Prime Minister Sheikh Hasina.
December 2024: Frustration grows among WazirX users as bull run arrives
In the wake of Donald Trump winning the U.S. Presidential elections in November, the price of Bitcoin and other major cryptocurrencies surged with a bullrun. In that regard, the frustration among WazirX users grew as their funds remain stuck with the exchange for the past 6 months now.
Delhi High Court trashes Delhi Police status report, asks for fresh probe
A single-judge bench of the Delhi HC rejected the status report filed by Delhi Police in the WazirX case and instructed police to do a fresh probe.
CoinDCX offers to takeover all WazirX users
CoinDCX, another Indian crypto exchange, offered to take over all WazirX users and duly compensate them for the loss of their funds due to the hack. Their offer was never considered by Nischal as users frustration kept growing.
March 2024: WazirX asks its own legal partner Kroll to hold elections, face protest
WazirX announced that it will hold voting for its 4.4 million users through an online platform that wil be provided by Kroll, its legal partner, whose fee has been paid out of the users’ funds.
Many questioned the transparency and accountability of this supposedly fair elections.
Also Read: “What Independent Voting?” WazirX Users on Kroll’s Conflict of Interest
WazirX lures users with promises of restoration of 85% funds in portfolio
The WazirX management claimed that they will reinstate atleast 85% funds of each of their users as it was before the hack on July 18, 2024, if they vote in their favor for a restructuring scheme. The remaining 15% funds will be returned in the process of next 2-3 years as per WazirX management.
April 2025 :WazirX receives thumping 93.1% majority in elections
WazirX’s legal partner, Kroll, conducted a week-long election whose results were declared on April 8, where the exchange claimed that it received over 93.1% votes in favor of the restructuring process.
WazirX will now approach the Singapore HC on May 13 with the voting results to get their restructuring scheme approved by the court. The exchange has claimed that the users will receive 85% of their funds within the next 10 days of scheme getting approved by the court.
Supreme Court dismisses petition against WazirX
As a last-ditch effort, several users of WazirX approached the apex court of India with a criminal writ petition, demanding an investigation against the exchange on grounds of negligence. A two member bench of SC dismissed the petition, stating that it cryptocurrencies are not under their purview.
2025: Where do we stand now?
April 2025’s 93.1% vote is a big step forward, but one court approval doesn’t erase months of silence, panic, and shattered faith. Most users want one thing: closure. That includes not just a refund but accountability, transparency, and reform.
- WazirX has proposed rebuilding on three fronts:
- Relaunching the core exchange under better compliance
- Launching a decentralized exchange (DEX)
- New product offerings and community rewards
But users are cautious. Without full disclosures, weekly updates, and regulatory oversight, relaunches mean little. Trust, once broken, takes years to rebuild.
The Binance Dilemma: Who’s Really Responsible?
The ownership dispute still festers. Binance claims it only offered tech support. Shetty claims otherwise, but emails, shared server access, and even leaked screenshots point to Binance having some level of control.
However, Binance absolved itself of responsibility when the hack happened. For users, this is infuriating. We want regulators to step in and force both parties to settle the matter—and ideally, return user funds.
What about the ED investigations?
The ED’s investigations into WazirX haven’t ended. After freezing ₹64.67 crore in 2021 and a further ₹370 crore in related money laundering cases, they’ve continued probing the company’s operations. A report in January 2025 hinted that some of these cases are now tied to broader crypto fraud rings.
Still, no formal charges have been made public. No convictions. No public hearings. For victims, it feels like a never-ending loop of headlines without resolution.
Conclusion: Are we heading toward a closure in WazirX?
If the Singapore court approves the plan in May 2025, it could start a phased recovery for users. Nischal has made some big promises, and that includes immediate restoration of 85% of the funds of all its users. Whether that will serve as a closure for the Indian users of the exchange is a thing only the future can tell. But a full closure—financial, emotional, and regulatory—requires more than compensation.
Also Read: SC Dismisses WazirX Users’ Plea, Says “Not Relevant Authority”
