WazirX Suffers $235 Million Hack in July 2024, Marking One of India’s Largest Crypto Breaches.
In July 2024, WazirX, one of India’s leading cryptocurrency exchanges, fell victim to a massive cyberattack, resulting in the loss of $235 million. The incident ranks among the largest crypto breaches in the country’s history, raising concerns over security vulnerabilities in digital asset platforms. Overnight, users lose access to nearly half their funds, withdrawals grind to a halt, and panic sets in. Fast forward to March 2025, and there’s a glimmer of hope—a Scheme of Arrangement proposed by WazirX’s parent company, Zettai Pte Ltd, under Singapore law. It’s a complex plan, but could it be the lifeline users need?
Let’s break it down and see what’s at stake for crypto enthusiasts and everyday investors alike.
The Hack That Shook India’s Crypto Scene
On July 18, 2024, hackers—allegedly North Korea’s infamous Lazarus Group—breached WazirX’s multisig wallet, siphoning off $235 million in crypto assets. That’s roughly 45% of user funds, according to official statements from WazirX. Trading stopped, INR and crypto withdrawals froze, and the exchange scrambled for a fix.
For users, it was a nightmare—some lost life savings, others trading capital. Now, eight months later, the focus is on recovery, and the Scheme of Arrangement is the hot topic.
What’s a Scheme of Arrangement, Anyway?
Think of it like a financial reset button, but with legal muscle. Under Singapore’s Insolvency, Restructuring, and Dissolution Act, this court-approved plan lets WazirX restructure its debts to users (creditors, in this case) and avoid a messy liquidation. Here’s the gist: if 50% of users by number and 75% by value vote yes between March 19–28, 2025, the Singapore High Court could greenlight it.
If it’s once approved,users get an initial payout of 85% of their July 2024 balances within 10 business days, plus Recovery Tokens (RTs) for future gains. It’s not a full refund, but it’s faster than waiting years for a liquidation payout.
How It Works?
Let’s say you had $1,000 in crypto on WazirX when the hack hit. Under the scheme, you’d get roughly $850 back soon after approval—likely in April or May 2025—based on rebalanced platform assets. The rest? You’d receive RTs, which act like IOUs tied to WazirX’s future profits and any recovered stolen funds.
The company’s also planning a decentralized exchange (DEX) to reboot operations, with profits shared via these tokens. It’s a creative twist, blending immediate relief with a bet on crypto’s upside.
The Catch: Socialized Losses
Here’s where it gets tricky—and a bit controversial. The $235 million loss is spread across all users, not just those whose wallets were hit. If you weren’t directly affected, you might still lose 15% of your balance to “share the pain.” WazirX calls it fair; some users call it unfair. “Why should I pay for their mistake?” one user vented on X.
To ease tensions, WazirX formed a Committee of Creditors in October 2024, giving users a voice. Still, the vote’s outcome hinges on whether the majority buys into this shared-loss logic.
Why It Might Beat the Alternatives
Liquidation sounds tempting—sell everything, pay users what’s left—but experts say it’s a slow burn. “It could take years, and you’d likely get less than 85%,” notes a Singapore insolvency lawyer cited by The Hindu.
The scheme, by contrast, moves fast and keeps WazirX alive, potentially unlocking more value through its DEX and asset recovery efforts. On-chain data backs this up: recovered funds from hacks often trickle in over time, and RTs could capitalize on that. Plus, with crypto markets trending up in 2025, those tokens might grow in value.
Real-World Stakes and Stats
WazirX isn’t small potatoes—over 7 million users traded on its platform pre-hack, per 2023 stats. The $235 million loss ranks among 2024’s biggest crypto heists, dwarfing the $112 million Ronin Bridge exploit earlier that year.
For India’s crypto community, this isn’t just about money; it’s about trust. Regulatory eyes are watching too—India’s Enforcement Directorate has probed WazirX before, and a botched recovery could fuel calls for tighter rules.
What’s Next for Users and the Market?
The voting window—March 19–28, 2025—is make-or-break. A “yes” vote could see funds flowing by May, boosting confidence in Indian crypto exchanges. A “no” risks years of legal limbo, possibly tanking WazirX for good.
Market watchers predict a ripple effect: a successful scheme might steady altcoin prices tied to WazirX’s ecosystem, while failure could spook investors. “This is a test case for crypto restructuring,” says blockchain analyst Priya Sharma. “It could set a precedent globally.”
The Bottom Line
WazirX’s Scheme of Arrangement isn’t perfect—socialized losses sting, and full recovery isn’t guaranteed. But it’s pragmatic, fast, and beats the drawn-out alternative of liquidation. For traders, it’s a lifeline to reclaim most funds soon; for investors, it’s a calculated gamble on RTs and market rebound. As the March vote looms, one thing’s clear: this isn’t just about WazirX—it’s about proving crypto can bounce back from disaster. Keep your eyes on this one; it’s a story still unfolding.
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