Unraveling the Ascent and Descent of WazirX: Tracing India's Largest Cryptocurrency Heist
Title: The Long, Twisted Tale of WazirX: India's Crypto Exchange Saga
From the daylight of July 18, 2024, a dark cloud loomed over India's largest crypto exchange, WazirX. A whopping $234.9 million vanished, locked away in the form of cryptocurrencies belonging to ordinary Indians, who dared to explore the volatile crypto trading world.
For nine months now, WazirX has kept a hold on a staggering ₹2500 crore of user funds. The cyber attack, orchestrated by suspects many believe to be linked with North Korea's infamous Lazarus Group, has left more questions than answers.
Users find themselves in limbo, grappling with a statistics-heavy predicament. An absurd situation, where they've been left high and dry by WazirX management, Indian authorities, the media, and the broader crypto community.
The Indian opposition, the Union Finance Ministry, and the media - all key pillars of society - have scarcely shown interest in helping those affected by the heist. The absence of regulation in the crypto sphere and negative connotations attached to it have added to the plight of WazirX users.
New Chapter, Old Fears - WazirX's Comeback Plan
On April 7, 2025, WazirX announced a new plan in Singapore. A whopping 93.1% of creditors agreed to this restructuring scheme, promising up to 85% return of stolen funds by mid-2025. The remainder may take another 2-3 years to recover, should the restructuring proposal receive the Singapore High Court's seal of approval.
Yet, the cheer remains muted. Skepticism runs high, and rightly so. Users have been burned, and WazirX's comeback is far from assured.
Rise and Fall - WazirX: The Genesis to Disaster
From humble beginnings in 2017, WazirX rose as the rising star of India's crypto industry. With an enviable blend of simplicity, strong community, and a charismatic leader, Nischal Shetty, WazirX became the go-to platform for desis wanting to dip their toes into the blockchain revolution.
Theplatform's popularity grew, hand in hand with WazirX's push to make crypto mainstream under the #IndiaWantsCrypto campaign. But success, without accountability, is transient.
On July 18, 2024, WazirX was hit by a cyberattack, as the Lazarus Group exploited a vulnerability in their multi-sig wallet. Trading froze, and users woke up to empty dashboards and no responses from WazirX.
The Silence and the Shame
Instead of addressing the issue with transparency and urgency, WazirX found itself engulfed in a blame game. Claims of no control, confused messages, and shady regulatory practices muddied the waters. Users were left stranded and bitter, as governing bodies, regulators, and mainstream media failed to act.
Unmasking: Not just an exchange, but an entire system
The WazirX fiasco was more than a cyber heist - it was a test of character for everyone involved. The indifference of institutions, the silence of the crypto community, and the tarnished image of Nischal Shetty all spoke volumes. Trust was stolen, and not just from WazirX users - but from the broader Web3 community as well.
Standing Today
As WazirX mulls its relaunch, users are no longer dreamers. They're disillusioned and wary. A plan on paper, a Singapore court hearing, a restructuring promise, and a supposed goal of up to 85% recovery by mid-2025 - none of it is enough to pacify the burnt and frustrated WazirX users.
The past is unforgiving, and a rekindled dream hinges on more than just recovered funds. Users remember the fall too clearly, and they won't celebrate until they see tangible change.
- WazirX, despite announcing a restructuring plan in Singapore, faces skepticism from users, who have yet to forget the cyber attack that resulted in the loss of ₹2500 crore.
- The stolen cryptocurrencies belonged to ordinary Indians, showcasing the growing interest in cryptocurrency trading.
- The Indian authorities, media, and broader crypto community have been criticized for their lack of interest in helping those affected by the heist.
- The WazirX restructuring proposal is pending approval from the Singapore High Court, which may take another 2-3 years for the remainder of stolen funds to be recovered.
- WazirX's popular cryptocurrency exchange platform in India grew in popularity due to its simplicity, strong community, and the charismatic leadership of Nischal Shetty.
- The Lazarus Group is believed to be linked to the cyberattack on WazirX, which resulted in the freezing of trading and empty balances for users.
- Negative connotations attached to the crypto sphere and the absence of regulation have made it difficult for those affected by the WazirX heist to seek help.
- The WazirX fiasco has highlighted the importance of accountability in the blockchain and cryptocurrency industry.
- Web3 is not just a platform, but an entire ecosystem that relies on trust, transparency, and strong governance to thrive.
- As WazirX prepares to relaunch, users are demanding tangible changes to regain their trust and rekindle their dream of investing in the cryptocurrency market.
