When WazirX finally reopened on October 24, 2025, after months of restructuring in Singapore, it said everything had gone smoothly. But users logging back in saw a different story: missing coins, blocked withdrawals, and portfolio values that didn’t make sense.
The exchange, once India’s largest, had gone offline following a massive $230 million hack in July 2024, when a multi-signature wallet managed with Liminal was compromised. Thousands of accounts were frozen overnight, and users were told their funds were being safeguarded during “a restructuring and verification process.”
Now, over a year later, as trading pairs go live again, users say they’ve returned to smaller portfolios and larger doubts.
The restructuring and rebalancing exercise
After the breach, WazirX’s Singapore-based parent company, Zettai Pte Ltd, began a court-approved restructuring process to stabilize the exchange and recover user assets.
In January 2025, the exchange conducted a rebalancing of customer holdings, verified by Alvarez & Marsal Disputes & Investigations Pte Ltd. Their report confirmed WazirX controlled about $478.5 million in verified Net Liquid Platform Assets (NLPA) across BitGo and other custodial wallets.
Following the audit, the company claimed that 85% of users’ funds had been distributed, while 34% of balances remained frozen under ongoing investigations. The rest would be compensated through a new token-based system called Recovery Tokens (RTs) — assets WazirX said it would buy back quarterly “based on profits and recovery efforts.”
But when users logged in after the relaunch, confusion spread fast. Many found balances that had significantly shrunk.
“This is pure betrayal”
Angry users flooded social media platforms, especially X, with screenshots and complaints.
One user wrote, “This is pure betrayal, @WazirXIndia. You showed higher NLPA values during rebalancing, but the final credited amount is way less. People trusted your platform — stop misleading users and show the real numbers!”
Another, Ashish, shared his portfolio snapshot, writing: “I lost nearly ₹40,000 because of @WazirXIndia’s so-called ‘Rebalancing’ process. If my original tokens were still in my portfolio, their value today would be around ₹1.5 lakh. This is daylight robbery from loyal users.”
Others, like Ajay Kashyap, went even further: “Anyone still trusting #WazirX seriously needs some mental help. Once trust is broken, no amount of marketing campaigns or paid interviews can ever buy it back.”
The sentiment was clear, users didn’t believe WazirX’s version of recovery.
The hashtag that didn’t add up
Ironically, while anger peaked online, #WelcomeBackWazirX trended on X for two straight days. But instead of celebration, the trend drew skepticism.
Many users alleged the hashtag’s rise was engineered by WazirX’s public relations (PR) team, accusing the exchange of paying influencers and running coordinated campaigns to paint a positive picture.
Many users pointed out the irony that while genuine investors were venting their anger online, the hashtag #WelcomeBackWazirX was mysteriously trending — a situation that, as they put it, “didn’t quite add up.”
Screenshots circulated showing near-identical “positive” posts from newly created accounts, with users pointing out that genuine complaints were getting buried.
The optics further damaged the exchange’s already fragile credibility. Many observed that no amount of online promotion could rebuild lost trust, and even previously neutral traders began doubting the authenticity of WazirX’s comeback narrative.
Withdrawals that weren’t really withdrawals
Perhaps the most frustrating part for users was the message they saw when trying to withdraw funds: “Crypto withdrawals are currently unavailable due to evolving regulations in the crypto industry. While you can’t withdraw crypto right now, you can still deposit and withdraw INR and trade all your favourite cryptocurrencies.”
The message ignited fury. “So I can put money in, but not take it out?” one post read. Another added: “You call this reactivation? This is like unlocking the door but keeping the exit closed.”
Several users claimed their crypto values were showing incorrectly, not updating with live market prices, and that delisted tokens were stuck with no way to sell or convert them.
One investor wrote: “The WazirX restructuring scheme is a big fraud. I’m surprised how the Singapore court approved this. Partial token distribution logic is weird. Why are they still holding our XRP?”
The 34% freeze and legal shadow
When questioned by The Hindu, WazirX confirmed that crypto and INR withdrawals were live “based on user compliance status,” but admitted that 34% of balances were still frozen.
A spokesperson said, “WazirX is working in collaboration with various law enforcement agencies to freeze or hold assets based on their investigations of various cases.”
However, for users, the explanation only deepened the distrust. “If you can accept deposits freely, why can’t you process withdrawals?” asked one X user.
WazirX reiterated that withdrawals depend on due diligence, and some tokens fall under restricted categories like “Rapid Listing tokens” — a common industry practice, it said.
The Madras High Court intervenes
Amid the chaos, a key legal twist arrived. On October 28, 2025, the Madras High Court sided with Rhutikumari, an investor whose 3,532.30 XRP coins, worth about ₹1.98 lakh, had been frozen even though they had nothing to do with the stolen ERC-20 tokens.
Justice Venkatesh stated clearly: “What were held by the applicant as cryptocurrencies were 3,532.30 XRP coins. What were subjected to cyber attack… were ERC-20 coins, which are completely different.”
The court rejected WazirX’s claim that the case belonged to Singapore’s jurisdiction, pointing out that the investor used the platform and transferred funds from Chennai.
The judgment also clarified that Zanmai Labs Pvt Ltd, the Indian operator of WazirX, is registered with the Financial Intelligence Unit (FIU), while Zettai Pte Ltd and Binance, associated with WazirX’s earlier ownership disputes, are not.
This ruling not only protected Rhutikumari’s assets but also set a precedent for other Indian users who may now legally challenge WazirX’s restructuring terms within India.
Recovery tokens or recovery theatre?
For now, WazirX continues to assure that it will use its profits to buy back Recovery Tokens (RTs) every quarter, gradually compensating affected users.
But there’s skepticism. Many investors see these RTs as speculative, uncertain in value, and dependent entirely on WazirX’s future performance. “They’re asking us to trust them again when trust is exactly what they destroyed,” one user remarked.
While WazirX insists it has verified its reserves and plans an independent Proof of Reserves (PoR) report soon, users say verification means little if liquidity remains locked.
Trust: the only asset that’s hard to recover
WazirX says its Indian entity, Zanmai Labs, will now oversee all trading, user withdrawals, and technical operations. Arbitration disputes will fall under Mumbai jurisdiction as per its Terms of Use.
But users have heard promises before. The exchange may have reopened, but for many, it hasn’t truly “returned.”
One viral post summed up the sentiment, noting that once trust is lost, no whitepaper or PR campaign can rebuild it.
For India’s crypto community, this moment isn’t just about one exchange — it’s about what happens when user protection, regulation, and transparency fail to move in sync.
WazirX has one last chance to rebuild credibility, not by words or trending hashtags, but by restoring what users actually want to see on their screens: their rightful funds, free to withdraw.
The road ahead
For WazirX, this relaunch is more than a technical exercise, it’s a credibility test. The company says its Indian entity will now manage all trading infrastructure, and future disputes will fall under Mumbai-based arbitration. But the real challenge isn’t legal — it’s emotional.
WazirX once symbolized the rise of India’s crypto movement. Today, it stands at a crossroads, trying to prove it can rebuild trust it has already lost.
Until users see their full balances reflected and funds unlocked, every official update will sound hollow. The platform’s survival now depends not on its balance sheet, but on whether it can restore what it broke — confidence.
For now, thousands of users remain logged in, watching every announcement, waiting for one simple change: a “withdrawal successful” message that actually means what it says.
Also Read: Crypto Leaders Warn Delays Could Cost India $1.1T Opportunity
