WazirX Resumes Trading After Year-Long Hiatus From $230M Hack: A New Chapter for India’s Crypto Pioneer
Introduction
In a landmark development for India's digital asset ecosystem, WazirX, once the nation's largest cryptocurrency exchange by volume, is set to resume trading operations on October 24, 2025. This announcement, delivered via email to creditors, concludes over a year of profound uncertainty stemming from a catastrophic security breach in 2024 that resulted in the theft of over $230 million in user assets. The exchange’s shutdown froze withdrawals, stranded thousands of creditors, and marked one of the most dramatic collapses in the country's crypto history. The path to this restart was paved by a Singapore High Court–approved restructuring under its parent company, Zettai Pte. Ltd., which received near-unanimous creditor backing earlier this year. As WazirX prepares to reopen its doors with a limited set of trading pairs and a zero-fee "Restart Offer," its revival represents a critical test of user confidence in a market still grappling with the aftershocks of platform failures and stringent tax regulations.
The Anatomy of the 2024 Security Breach and Collapse
The event that precipitated WazirX's year-long hiatus was a massive security breach in 2024. The hack led to the loss of over $230 million worth of various tokens from the exchange's coffers. This incident had an immediate and paralyzing effect: user assets were frozen, withdrawal functionalities were shuttered, and India’s oldest crypto platform was effectively taken offline.
The scale of the theft placed it among the most significant crypto exchange hacks globally. For context, the 2014 Mt. Gox hack, which involved approximately 850,000 bitcoin, and the 2018 Coincheck hack, where $534 million worth of NEM was stolen, serve as historical benchmarks for such catastrophic security failures. The WazirX breach not only highlighted vulnerabilities in the exchange's infrastructure but also triggered a chain of legal and financial proceedings that would consume the following year. The freeze on assets left thousands of creditors in financial limbo, unable to access their funds and with little initial clarity on the path forward.
The Long Road to Recovery: Restructuring and Creditor Backing
The process of resurrecting WazirX was neither swift nor simple. Following the security breach, the exchange embarked on a complex journey involving insolvency proceedings, detailed forensic audits to determine the exact scope of the hack, and the formulation of plans to migrate users and assets to a new, more secure system. For many creditors, this period was characterized by a slow and often frustrating wait for concrete information.
A pivotal turning point arrived earlier in 2025 when Zettai Pte. Ltd., WazirX's parent company, presented a restructuring plan that received near-unanimous backing from the affected creditors. This approval was a crucial prerequisite for the subsequent sanctioning by the Singapore High Court. The court-approved restructuring provided the legal and financial framework necessary to attempt a relaunch. The announcement on October 23, 2025, finally provided a concrete timeline, confirming that token distributions and the issuance of "Recovery Tokens" would commence alongside the platform's relaunch on October 24.
Operational Relaunch: Trading Pairs and the "Restart Offer"
With the legal hurdles cleared, WazirX has outlined its initial operational blueprint for its return. Trading will recommence with a carefully selected handful of markets. This limited rollout will include crypto-to-crypto trading pairs and a USDT/INR market, allowing users to trade between Tether and the Indian Rupee.
A key component of its strategy to lure users back is the "Restart Offer." As part of this promotional launch, WazirX has declared that all users will enjoy zero trading fees at launch. This move is a direct effort to incentivize activity and rebuild liquidity on the platform from day one. By starting with a focused set of offerings and removing transaction costs temporarily, the exchange aims to create a stable and attractive environment for its returning user base.
Rebuilding Trust in a Battered Market: The BitGo Partnership
Perhaps the most significant challenge WazirX faces is rebuilding trust within India's retail crypto community. This community has been battered by two major headwinds: the repeated failure of local platforms and the imposition of heavy tax burdens on crypto transactions by Indian authorities. The collapse of WazirX itself left a lasting scar on user confidence.
In response, WazirX is attempting to demonstrate a renewed commitment to security. The exchange has announced a partnership with BitGo, a prominent digital asset trust company. BitGo will be tasked with safeguarding platform assets through what is described as institutional-grade, insured custody solutions. This partnership is a tangible step aimed at assuring users that asset security is now paramount. It signals a shift from the previous security model that proved vulnerable to a determined attack.
Comparative Context: WazirX's Place in India's Evolving Crypto Landscape
Before its downfall, WazirX was a dominant force in India's crypto boom, often leading in trading volume among domestic exchanges. Its absence for over a year created a vacuum that other players have sought to fill. Exchanges like CoinDCX and ZebPay have continued to operate and likely captured significant market share during this period.
The re-entry of WazirX introduces a new dynamic. Its success will depend not only on its ability to reassure former users but also on its capacity to compete in a market that has evolved without it. While it benefits from name recognition as "India’s oldest crypto platform," it also carries the heavy baggage of its recent history. The market will be watching closely to see if its enhanced security measures and user incentives are enough to win back its former position or if it will re-enter as a smaller, more niche player.
Conclusion: A Cautious Return with Broader Implications
The resumption of trading on WazirX marks the end of a painful chapter for its creditors and a tentative new beginning for the exchange itself. The successful execution of its court-approved restructuring and its partnership with BitGo for insured custody are positive steps toward stability and security. However, as noted in the announcement, "One that even a successful restart may not easily repair," referring to the lasting scar on user confidence.
For observers and participants in the global crypto market, WazirX's return serves as a live case study in post-crisis exchange recovery. Its performance in the coming months will offer critical insights into whether trust, once severely broken, can be restored through transparent processes and enhanced security protocols. Readers should monitor key metrics such as trading volumes on the relaunched platform, user sentiment on social media and forums, and any official communications regarding the distribution of Recovery Tokens and ongoing security audits. The journey of WazirX is far from over; it is now entering its most critical phase—proving its resilience and value to a rightfully cautious community.