CRITICAL SECURITY ALERT (2026 Status Update)
In July 2024, WazirX suffered a catastrophic cyberattack on its multi-signature storage, resulting in the theft of over $234.9 Million in user cryptocurrencies (approximately 45% of total platform assets). Platform operations are currently under Singapore High Court scheme of arrangement and moratorium proceedings. Indian investors are strongly advised NOT to deposit new INR or crypto funds into WazirX.
| Platform Entity | WazirX (Zanmai Labs / Zettai Pte Ltd) |
| Current Operational Status | Under Singapore High Court Restructuring (Moratorium) |
| INR & Crypto Withdrawals | Restricted / Subject to Court-Supervised Scheme Approval |
| Security Incident Details | July 2024 Multi-Sig Cyber Attack ($234.9M Asset Loss) |
| Trading Availability | Limited In-App Order Book Execution |
| Recommended Safe Alternatives | Sun Crypto, CoinDCX (FIU-IND Registered) |
Looking for a Safe, FIU-Compliant Indian Exchange?
If you are seeking instant INR bank withdrawals, direct UPI deposits, and complete regulatory compliance with Financial Intelligence Unit (FIU-IND) guidelines, Sun Crypto is an active, verified platform for Indian traders.
WazirX was historically India’s largest cryptocurrency exchange by trading volume, launched in 2018 and widely recognized for pioneering India’s earliest high-volume peer-to-peer (P2P) fiat trading engine. However, the catastrophic security breach in mid-2024 fundamentally altered the exchange’s operational reality, leaving thousands of retail investors with frozen portfolio balances and legal restructuring proceedings.
What Happened to WazirX? The July 2024 Cyber Attack
On July 18, 2024, a sophisticated cyber attack breached one of WazirX’s primary multi-signature cold/warm wallets managed in partnership with digital asset custody firm Liminal. Over $234.9 million in high-liquidity digital assets—including substantial quantities of Shiba Inu (SHIB), Ethereum (ETH), Polygon (MATIC), and Tether (USDT)—were systematically drained by hostile actors linked by global cybersecurity analysts to North Korea’s Lazarus Group.
The stolen assets represented nearly 45% of the total digital reserves backing user account balances. In immediate response, WazirX halted all INR fiat and cryptocurrency withdrawals, froze domestic order books, and initiated emergency legal consultations.
Understanding the Singapore High Court Restructuring
Because WazirX’s parent holding company, Zettai Pte Ltd, is incorporated in Singapore, the exchange filed for legal protection under Section 64 of the Singapore Insolvency, Restructuring and Dissolution Act (IRDA). The Singapore High Court granted an initial moratorium to protect the company from creditor lawsuits while formulating a comprehensive Scheme of Arrangement.
Key pillars of WazirX’s proposed restructuring framework include:
- Pro-Rata Balance Adjustments: Proposals to socialise losses across all platform users, allowing access to an estimated 55% of unaffected assets while restructuring the remaining 45% into recovery tokens or future profit-share certificates.
- Decentralized Exchange (DEX) Revenue Model: Plans to launch a decentralized trading exchange to channel platform trading fees toward ongoing user restitution.
- Third-Party White Knight Funding: Ongoing discussions with institutional investors to inject fresh capital into the operational business.
Current Withdrawal Status: Can You Take Your Money Out?
As of 2026, standard on-demand INR bank transfers and direct on-chain cryptocurrency withdrawals remain strictly restricted. While the platform has facilitated phased, partial INR distributions for specific user tranches under court monitoring, full portfolio withdrawals cannot resume until the Scheme of Arrangement is formally voted upon by registered creditors and sanctioned by the Singapore High Court.
Users holding balances on WazirX should monitor official court-sanctioned communications, avoid speculative third-party claims buyers, and ensure their registered email and KYC records remain active for upcoming voting procedures.
Safe FIU-Compliant Alternatives in India (2026)
For traders actively seeking dependable crypto-to-INR liquidity without counterparty solvency risks, prioritize exchanges registered with the Financial Intelligence Unit (FIU-IND) that enforce 1:1 asset backing and proof of reserves:
- Sun Crypto: Fully compliant Indian crypto exchange supporting 150+ tokens, instant IMPS/UPI bank deposits and withdrawals, and complete FIU compliance.
- CoinDCX: Established Indian digital asset exchange with verified proof of reserves, multi-signature cold storage insured against technical breaches, and integrated tax reporting tools.
Frequently Asked Questions (FAQ)
Is WazirX safe to use in 2026?
No. Due to the outstanding 45% asset shortfall and ongoing Singapore High Court restructuring, depositing fresh INR or cryptocurrency into WazirX carries extreme capital loss risks.
When will full WazirX withdrawals resume?
Full withdrawals cannot resume until the official Scheme of Arrangement is approved by platform creditors and formally sanctioned by the Singapore judiciary. Restructuring timelines typically require 12 to 18 months.
Can I trade my remaining balances on WazirX?
Limited internal trading functionality may be operational for select pairs, but withdrawing realized INR or external crypto tokens remains tightly restricted.
Are crypto exchanges legal and operational in India?
Yes. Cryptocurrency trading is permitted in India provided platforms comply with FIU-IND anti-money laundering regulations and users adhere to mandatory 1% TDS and 30% capital gains tax reporting.