WazirX relaunch after $230M hack tests trust in India market

WazirX relaunch comes as the exchange prepares to resume trading after a $230 million hack, under a restructuring led by Zettai and with creditor repayment plans in motion. The relaunch follows the platform’s response to the breach and the initiation of creditor repayment plans amid ongoing crypto asset recovery efforts.

How will the WazirX asset recovery and restructuring under Zettai work?

Following the breach first reported in 2025, the platform has been placed under a recovery plan overseen by Zettai. The group is coordinating asset tracing and pursuing parallel legal avenues to reclaim funds tied to the incident, described as a crypto exchange security breach. 

From experience with large exchange incidents, effective recoveries typically require a combination of on-chain analytics, cooperation from other exchanges and custodians, and cross‑jurisdictional legal action; even then, only a portion of assets are often reclaimed within the first year. Zettai’s stated coordination with custodial partners and forensic teams aligns with industry best practice for high-value breaches and should help prioritise recoveries tied to identifiable transfers.

Company statements on or around Oct 23, 2025 indicate Zettai will prioritise recoveries tied to stranded customer assets and engage custodial partners to stabilise custody operations. In practice, the initial focus appears aimed at assets most exposed by the incident. Recovery efforts remain subject to ongoing investigations and third-party verification.

What are the immediate recovery steps?

Immediate steps emphasise asset tracing, custodial stabilisation and concurrent legal actions. These measures are being rolled out while verification and regulatory reviews continue.

What does WazirX creditor compensation and token distribution entail?

Zettai has outlined creditor repayment measures intended to compensate users affected by the hack, including proposals for cash repayments alongside structured token allocations. The plan explicitly mentions a component of WazirX token distribution to creditors as part of the remediation mix.

Timelines and precise amounts remain contingent on creditor approval and regulatory sign-off; some elements are still being finalised. The proposal is framed to balance immediate liquidity needs with an equitable approach for all claimants.

Who will receive payouts and how soon?

Payout eligibility and sequencing are subject to the claims process and creditor votes. Stakeholders should expect phased distributions aligned with verification outcomes and regulatory clearance.

Will WazirX zero trading fees and BitGo custody partnership restore india crypto exchange trust?

The exchange plans a temporary WazirX zero trading fees policy on restart to encourage liquidity and reassure users. Management says the fee waiver is intended to lower barriers to re-entry while systems undergo auditing.

Separately, trials with a BitGo custody partnership are underway to strengthen on-chain custody and institutional controls. These tests aim to demonstrate improved safeguards and to help rebuild india crypto exchange trust over time. A temporary zero-fee window can jump-start order books and user activity, but must be combined with market‑making incentives and enhanced surveillance to prevent opportunistic trading and maintain orderly markets.

How will custody and fee changes be validated?

Validation will rely on completed custody tests, independent audits and regulatory assessments. Progress on fees and custody changes will be tied to those independent findings.

When will WazirX restart trading after the crypto exchange security breach?

The exchange announced a trading restart planned for Friday following the Oct 23, 2025 update, subject to final system checks and compliance clearances. WazirX has said it will “restart trading on Friday,” according to CoinDesk. Restart conditions include completed custody tests and initial creditor repayments.

Trading will resume with risk controls and enhanced monitoring, and the zero-fee window will be limited while audits continue. Market participants should treat the relaunch as a controlled restart rather than a full return to pre-hack normalcy.

In brief, the relaunch pairs immediate customer measures with structural changes under Zettai to restore operations and confidence. Progress remains dependent on ongoing recovery work, creditor approval, and custody verification.

What should users monitor after the restart?

Users should monitor custody verification outcomes, the timetable for creditor repayments, and any audit findings published by independent reviewers. It is also prudent to watch for regulatory notices that could affect ongoing operations.

Note: Key timelines and amounts cited by the exchange remain subject to verification and regulatory review.