April 30, 2025
By Anjali Kochhar
WazirX, once a dominant player in India’s crypto exchange market, is facing intensified criticism from its user base after news emerged that its asset recovery efforts may be delayed until 2026. The controversy stems from a $230 million hack in July 2024, which severely impacted the platform’s ability to return user funds.
Following the breach, the company sought legal protection in Singapore to manage its financial obligations. In September 2024, the Singapore High Court granted WazirX’s parent entity, Zettai, a four-month moratorium. This legal pause allowed the exchange to work on a restructuring plan under tight oversight. Among the court’s conditions were the requirement to publicly disclose wallet addresses, submit financial data, and respond to user inquiries raised during court proceedings. Additionally, any future court applications involving creditor votes must be overseen by independent third parties.
Despite these safeguards, frustration among users continues to grow. Many had hoped for asset recovery by mid-2025, but the timeline has now reportedly extended into 2026. This delay has sparked outrage, with some users accusing co-founder Nischal Shetty of making misleading public statements and failing to meet earlier commitments. The perceived lack of transparency has further strained trust between the company and its community.
Adding to the complexity, the court has asked Zettai to explain how U.S. tariffs may have affected the valuation of WazirX-held assets. Critics argue that the restructuring plan appears less focused on prompt user compensation and more on locking users into a drawn-out holding structure with limited options for recovery or withdrawal.
The case has highlighted wider concerns about user protections on centralised crypto platforms, especially in regulatory environments like India’s, where clear legal frameworks are still evolving. WazirX’s handling of the crisis may set a precedent for how similar situations are addressed in the future.
A decisive court hearing on May 13, 2025, will determine whether the proposed restructuring plan and user compensation strategy will move forward. The outcome could be crucial not only for affected users but also for the credibility and future of WazirX in the broader crypto ecosystem.
About the author
Anjali Kochhar covers cryptocurrency and blockchain stories in India as well as globally. Having been in the field of media and journalism for over four years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.
