WazirX Relaunch Sparks Renewed Hope for India's Crypto Ecosystem: A Deep Dive into the Oct 24 Comeback
In a landmark development for India's digital asset landscape, homegrown cryptocurrency exchange WazirX has officially announced its return to operations on October 24, 2025, ending a 15-month hiatus triggered by a catastrophic cyberattack. The relaunch, sanctioned by the Singapore High Court and backed by an overwhelming 95.7% of creditors, marks a critical juncture for the platform that once dominated Indian crypto trading volumes. With a strategic rollout featuring zero trading fees and a partnership with insured custody provider BitGo, WazirX is attempting to script one of the most remarkable recovery stories in the industry. This move not only reopens a major gateway for Indian crypto traders but also tests the resilience of an ecosystem still grappling with the aftershocks of the 2024 security breach.
The Fall and Restructuring: A Timeline of Recovery
WazirX’s journey back to operational status is a tale of legal perseverance and financial restructuring. The exchange, a subsidiary of Zettai Pte. Ltd., was forced to suspend services in July 2024 following a devastating security breach attributed to North Korea’s Lazarus Group. The hack resulted in losses of approximately $230 million, which represented nearly 45% of the platform’s total holdings of $500 million at the time. This event crippled the exchange, froze user funds, and initiated a complex period of insolvency proceedings and forensic audits across jurisdictions in India and Singapore.
The turning point arrived with the Singapore High Court’s approval of the exchange’s restructuring plan. The court’s endorsement, supported by 95.7% of creditors, provided the legal foundation for WazirX to resume operations. This approval was not merely procedural; it signified creditor confidence in the platform’s revised operational and security framework. The structured approach, including a defined timeline for recommencement, underscores a methodical effort to comply with legal standards and restore systemic integrity before welcoming back users.
Phased Relaunch Strategy: Zero Fees and Gradual Token Reactivation
A central pillar of WazirX’s comeback strategy is its phased relaunch plan, designed to ensure stability and rebuild user engagement. The exchange confirmed that trading will resume on October 24, 2025, with zero trading fees across all markets. This fee waiver is a clear tactical move to lower barriers for returning and new users, encouraging participation during the critical initial phase of operations.
The reactivation of trading services will not be instantaneous. Instead, WazirX will enable trading for tokens gradually over a four-day period. According to the plan, about 25% of tokens will be reactivated each day, with full trading functionality expected by October 27, 2025. This staggered approach aligns with the 10-business-day timeline stipulated in the court-approved restructuring plan. It allows the technical and support teams to monitor system performance, manage liquidity reintroduction, and address any issues proactively without overwhelming the platform’s infrastructure.
Security Overhaul: BitGo Partnership and Insured Custody
In response to the security failures that led to its downfall, WazirX has announced a pivotal partnership with BitGo to provide insured custody for platform assets. This collaboration is arguably the most significant operational change implemented since the hack. BitGo’s role as a qualified custodian means that user assets held on the exchange will be stored under an insured custody model, which aims to mitigate risks associated with theft or loss.
The choice of BitGo is strategic. As a regulated custodian known for its robust security protocols and insurance coverage, BitGo brings a layer of institutional-grade protection that was previously absent. For a user base that saw $230 million vanish in the 2024 breach, this partnership is intended to serve as a tangible assurance that asset security is now paramount. It represents a direct addressal of the core vulnerability exploited by the Lazarus Group and is a critical component in WazirX’s trust-rebuilding campaign.
User Compensation: The Recovery Token Initiative
Acknowledging the financial impact on its users, WazirX has committed to distributing recovery tokens to those affected by the hack. The exchange stated that it would begin issuing these tokens once trading resumes. While specific details regarding the structure, value, or distribution mechanism of these recovery tokens were not elaborated upon in the announcement, their introduction is a key part of the restitution process.
This initiative follows a common practice in post-hack scenarios where exchanges issue tokens representing a claim on recovered funds or future platform revenues. For creditors and users who lost assets, these tokens are a mechanism for partial compensation and a stake in the exchange’s revived operations. Their successful implementation and perceived fairness will be closely watched as an indicator of WazirX’s commitment to rectifying past grievances.
The Competitive Landscape: WazirX’s Uphill Battle for Relevance
WazirX’s absence created a vacuum in India’s crypto market, leading to a significant migration of users to offshore platforms. Prior to the July 2024 hack, WazirX was the leading cryptocurrency exchange in India by trading volume. Its prolonged shutdown forced Indian traders to seek alternatives, many of which offered competitive fees, diverse asset offerings, and perceived better security.
The relaunch now positions WazirX not just as a recovering entity but as a contender in a transformed market. Its immediate differentiators are the zero-fee trading and insured custody. However, regaining its former market share requires more than promotional tactics; it demands sustained operational excellence, transparency, and demonstrable security improvements. The platform must convince a cautious community that it has learned from past failures and that user asset protection is now embedded in its core operations.
Broader Implications for India’s Crypto Ecosystem
The return of a major player like WazirX has symbolic and practical implications for India's broader cryptocurrency ecosystem. It occurs against a backdrop of ongoing regulatory evolution and increasing mainstream interest in digital assets within the country. A successful relaunch could signal maturation and resilience, showing that platforms can recover from severe setbacks with improved governance and security.
Conversely, any further missteps could reinforce skepticism among retail investors and potentially influence regulatory attitudes toward domestic exchanges. The Indian crypto community’s response to WazirX’s return will be a barometer of trust and acceptance, factors that are crucial for the long-term growth of the market in the region.
Conclusion: A Cautious Optimism as Trading Resumes
The relaunch of WazirX on October 24 is a significant event layered with both opportunity and challenge. The court-approved restructuring, zero-fee launch period, insured custody via BitGo, and planned recovery token distribution form a comprehensive revival blueprint. These elements address critical pain points from the past—security vulnerabilities, user compensation, and transactional accessibility.
For observers and participants in the crypto space, the weeks following October 24 will be critical. Key metrics to monitor will include trading volumes, user adoption rates, platform stability during the phased rollout, and the market reception of the recovery tokens. The ultimate success of WazirX’s comeback will not be measured by its relaunch day performance but by its sustained ability to operate securely, transparently, and reliably in a competitive and unforgiving market. For India's crypto ecosystem, this moment represents a test of resilience and a potential step toward restored confidence in homegrown digital finance infrastructure.