Token

2024

WazirX

<a rel="noopener noreferrer nofollow" href="https://bitcoinworld.co.in">BitcoinWorld</a> <img src="https://bitcoinworld.co.in/wp-content/uploads/BitcoinWorld-WazirX-Hack-Funds-Update.png" style="display: block; margin: 1em auto"> <a rel="noopener noreferrer nofollow" href="https://bitcoinworld.co.in/what-happened-to-wazirx-users-funds-after-the-hack/">What Happened to WazirX Users’ Funds After the Hack?</a>
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WazirX users’ funds went through a freeze lasting more than a year, a court-supervised restructuring, an 85% initial payout, and a still-unresolved final 15%&nbsp; –&nbsp; a saga that began with a $230 million wallet breach in July 2024 and remains only partially closed as of mid-2026. This article walks through exactly what happened to user funds at each stage, what users have actually received, and what remains outstanding today.&nbsp;
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<h2 id="b-what-triggered-the-freeze-in-the-first-place-b">What Triggered the Freeze in the First Place?</h2>
The hack itself struck the wallet holding user assets, which is why every WazirX customer was affected, not just the exchange.
<ul>
 <li style="font-weight: 400;">The breach: On 18 July 2024, attackers&nbsp; –&nbsp; later attributed to North Korea’s Lazarus Group&nbsp; –&nbsp; exploited a multisig wallet held under a custody arrangement with Liminal Custody. They altered the wallet’s underlying smart contract, gaining full control without needing WazirX’s own signing keys, and drained approximately $234.9 million in crypto assets.</li>
 <li style="font-weight: 400;">Immediate response: WazirX suspended trading and withdrawals the same day and reset user balances to their state just before the attack, reversing any trades made afterward.</li>
 <li style="font-weight: 400;">What followed: A public dispute broke out after WazirX initially proposed spreading the losses across all users’ holdings rather than isolating them to the stolen wallet, triggering user protests. WazirX ended its custody relationship with Liminal in August 2024 and began migrating remaining funds to new wallets.</li>
</ul>
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<h2 id="b-how-did-the-legal-recovery-process-unfold-b">How Did the Legal Recovery Process Unfold?</h2>
The path back to user funds ran through courts in both Singapore and India, and took well over a year to produce an actual payout.
<ul>
 <li style="font-weight: 400;">Restructuring scheme: WazirX’s parent company proposed a formal restructuring plan, which required creditor approval and court sanction in Singapore, where the corporate entity is based.</li>
 <li style="font-weight: 400;">Creditor vote: More than 93% of voting creditors, representing over 94% of total claim value, approved the restructuring scheme.</li>
 <li style="font-weight: 400;">Madras High Court ruling: In October 2025, India’s Madras High Court ruled that certain user-held tokens, such as XRP, could not be used to offset unrelated platform losses&nbsp; –&nbsp; affirming that cryptocurrency holdings remain the legal property of individual users rather than pooled assets available to cover the exchange’s shortfall.</li>
 <li style="font-weight: 400;">Singapore High Court sanction: The Singapore High Court formally sanctioned the amended restructuring scheme on 13 October 2025, clearing the final legal hurdle for refunds to begin.</li>
</ul>
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<h2 id="b-what-have-users-actually-received-so-far-b">What Have Users Actually Received So Far?</h2>
The recovery has come in two distinct stages, and only the first stage has delivered funds users can freely withdraw.
<ul>
 <li style="font-weight: 400;">Stage 1&nbsp; –&nbsp; Platform restart and 85% distribution (October 2025): WazirX resumed trading operations on 24 October 2025, migrating custody to institutional provider BitGo. Eligible pre-hack users received an initial distribution covering approximately 85% of their approved claims, which became withdrawable. The exchange also ran a temporary zero-fee trading promotion to encourage users back onto the platform.</li>
 <li style="font-weight: 400;">Stage 2&nbsp; –&nbsp; Recovery Tokens for the remaining 15% (January 2026): On 9 January 2026, WazirX confirmed that Recovery Tokens (RTs) had been credited to all eligible users’ accounts on a pro-rata basis, within the 60-business-day window promised under the restructuring scheme. These tokens are visible in the app’s Funds tab but are not tradable or withdrawable&nbsp; –&nbsp; they represent a claim on future value, not liquid funds.</li>
 <li style="font-weight: 400;">User complaints during rollout: Some users reported receiving less than expected or facing inconsistent payout calculations during the initial 85% distribution, along with delays caused by mandatory re-KYC requirements.</li>
</ul>
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<h2 id="b-what-happens-to-the-remaining-15-and-when-will-it-be-resolved-b">What Happens to the Remaining 15%, and When Will It Be Resolved?</h2>
The final 15% of user funds is tied directly to WazirX’s future business performance, not a fixed repayment date.
<ul>
 <li style="font-weight: 400;">The buyback mechanism: WazirX has committed to reviewing recoveries every three months and using at least $10 million in unencumbered value each quarter to buy back Recovery Tokens from users, converting them gradually into liquid assets such as USDT.</li>
 <li style="font-weight: 400;">No confirmed quarterly progress yet: As of mid-2026, WazirX has not publicly confirmed whether it has met its own $10 million quarterly recovery threshold in any quarter since the restructuring began.</li>
 <li style="font-weight: 400;">New revenue pushes tied to the recovery pool: WazirX has launched several new products since its restart&nbsp; –&nbsp; including a subscription trading plan, new token listings, and INR-settled futures contracts in May 2026&nbsp; –&nbsp; with the exchange stating that resulting profits will flow toward additional Recovery Token buybacks. Some users and industry commentators have questioned whether this product expansion is a genuine path to funding recovery or a distraction from the unresolved 15%.</li>
 <li style="font-weight: 400;">Only a fraction of stolen assets traced: Independent estimates suggest only around 12–15% of the originally stolen crypto has been traced through blockchain forensics, meaning most of the shortfall must be made up through WazirX’s own future profitability rather than recovered stolen funds.</li>
 <li style="font-weight: 400;">Parliamentary scrutiny: WazirX representatives were called before India’s Parliamentary Standing Committee on Finance in May 2026 to discuss virtual digital asset issues, though the outcome of that discussion has not been made public.</li>
</ul>
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<h2 id="b-what-should-affected-users-do-now-b">What Should Affected Users Do Now?</h2>
If you held funds on WazirX at the time of the July 2024 hack, there are a few concrete things worth checking.
<ul>
 <li style="font-weight: 400;">Check your Recovery Token allocation: Log into the WazirX app and review your balance in the Funds tab to confirm your pro-rata RT allocation matches your approved claim.</li>
 <li style="font-weight: 400;">Keep documentation of your original claim: Retain records of your pre-hack balances and any correspondence from the Fund Recovery Portal in case of future disputes over calculation accuracy.</li>
 <li style="font-weight: 400;">Don’t expect a fixed payout date for the remaining 15%: Value recovery depends on WazirX’s quarterly profitability and asset recovery efforts&nbsp; –&nbsp; there is no guaranteed timeline for full restitution.</li>
 <li style="font-weight: 400;">Treat new deposits as separate: Any funds you deposit on WazirX today are fully liquid and unrelated to the 2024 recovery pool.</li>
</ul>
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<h2 id="b-frequently-asked-questions-b">Frequently Asked Questions</h2>
<h3 id="b-have-wazirx-users-gotten-their-money-back-b">Have WazirX users gotten their money back?</h3>
Partially. Eligible users received about 85% of their pre-hack claims as a liquid, withdrawable distribution starting in October 2025. The remaining 15% was converted into Recovery Tokens in January 2026, which are not yet tradable or withdrawable and depend on WazirX’s future profits for eventual value.
<h3 id="b-can-wazirx-users-sell-or-withdraw-their-recovery-tokens-b">Can WazirX users sell or withdraw their Recovery Tokens?</h3>
Not currently. As of mid-2026, Recovery Tokens are non-tradable and non-withdrawable. WazirX has said the tokens could become tradable at a later stage, subject to legal clearance, but no confirmed date has been announced.
<h3 id="b-is-there-a-deadline-for-wazirx-to-repay-the-outstanding-15-b">Is there a deadline for WazirX to repay the outstanding 15%?</h3>
No fixed deadline exists. The restructuring scheme sets a review cadence of every three months, with buybacks funded by at least $10 million in recovered or profit-generated value per quarter when available&nbsp; –&nbsp; but full recovery is explicitly tied to WazirX’s ongoing financial performance rather than a guaranteed date.
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<h2 id="b-conclusion-a-recovery-that-is-real-but-still-incomplete-b">Conclusion: A Recovery That Is Real, But Still Incomplete</h2>
WazirX users have recovered the large majority of their frozen funds, but the process took more than a year of legal proceedings across two countries, and a meaningful slice&nbsp; –&nbsp; about 15% of pre-hack holdings&nbsp; –&nbsp; remains locked in Recovery Tokens with no guaranteed payout date. The outcome so far shows that a structured, court-supervised restructuring can return most user funds even after a nine-figure hack, but it also shows how long and uncertain that path can be when a breach hits the wallet holding customer assets directly, rather than a separate operational account.
This post <a rel="noopener noreferrer nofollow" href="https://bitcoinworld.co.in/what-happened-to-wazirx-users-funds-after-the-hack/">What Happened to WazirX Users’ Funds After the Hack?</a> first appeared on <a rel="noopener noreferrer nofollow" href="https://bitcoinworld.co.in">BitcoinWorld</a>.

What Happened to WazirX Users’ Funds After the Hack?

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