When WazirX finally reopened on October 24, 2025, after months of restructuring in Singapore, the exchange claimed everything had gone smoothly. However, users logging back in encountered a different reality: missing coins, blocked withdrawals, and portfolio values that appeared inaccurate.
The exchange, once India’s largest, had temporarily ceased operations following a massive $230 million hack in July 2024. A multi-signature wallet managed with Liminal was compromised, leading to thousands of accounts being frozen overnight. Users were informed that their funds were being safeguarded during a “restructuring and verification process.” Now, over a year later, as trading pairs resume, users report returning to diminished portfolios and increased skepticism.
The Restructuring and Rebalancing Exercise
Following the breach, WazirX’s Singapore-based parent company, Zettai Pte Ltd, initiated a court-approved restructuring process aimed at stabilizing the exchange and recovering user assets. In January 2025, the exchange conducted a rebalancing of customer holdings, a process verified by Alvarez & Marsal Disputes & Investigations Pte Ltd. Their report confirmed that WazirX controlled approximately $478.5 million in verified Net Liquid Platform Assets (NLPA) across BitGo and other custodial wallets.
After the audit, the company stated that 85% of users’ funds had been distributed, with 34% of balances remaining frozen under ongoing investigations. The remaining portion was to be compensated through a new token-based system called Recovery Tokens (RTs). WazirX announced its intention to buy back these assets quarterly, contingent on profits and recovery efforts.
However, upon logging in after the relaunch, many users discovered that their balances had significantly decreased, leading to widespread confusion.
User Reactions and Dissatisfaction
Angry users took to social media platforms, particularly X, to share screenshots and express their grievances. One user posted, “This is pure betrayal, @WazirXIndia. You showed higher NLPA values during rebalancing, but the final credited amount is way less. People trusted your platform — stop misleading users and show the real numbers!”
Another user, Ashish, shared a snapshot of his portfolio, stating, “I lost nearly ₹40,000 because of @WazirXIndia’s so-called ‘Rebalancing’ process. If my original tokens were still in my portfolio, their value today would be around ₹1.5 lakh. This is daylight robbery from loyal users.”
Others, like Ajay Kashyap, expressed profound disappointment, remarking, “Anyone still trusting #WazirX seriously needs some mental help. Once trust is broken, no amount of marketing campaigns or paid interviews can ever buy it back.” The prevailing sentiment among users was a strong disbelief in WazirX’s recovery narrative.
The #WelcomeBackWazirX Trend and Allegations
Ironically, as user anger intensified online, the hashtag #WelcomeBackWazirX trended on X for two consecutive days. However, instead of signaling celebration, the trend was met with considerable skepticism from the user base.
Many users alleged that the hashtag's prominence was orchestrated by WazirX’s public relations (PR) team. They accused the exchange of compensating influencers and implementing coordinated campaigns to project a positive image. Users pointed out the incongruity of genuine investor complaints being overshadowed by a trending hashtag, suggesting a manufactured narrative.
Screenshots circulated online, showcasing nearly identical “positive” posts originating from newly created accounts. This fueled suspicions that WazirX was attempting to bury legitimate user complaints under a wave of promotional content. The optics further eroded the exchange’s already fragile credibility, with many observers noting that promotional efforts could not effectively rebuild lost trust.
Withdrawal Restrictions and User Frustration
A significant point of contention for users was the message displayed when attempting to withdraw funds: “Crypto withdrawals are currently unavailable due to evolving regulations in the crypto industry. While you can’t withdraw crypto right now, you can still deposit and withdraw INR and trade all your favourite cryptocurrencies.”
This message triggered widespread anger. One user questioned, “So I can put money in, but not take it out?” Another commented, “You call this reactivation? This is like unlocking the door but keeping the exit closed.” Several users reported that their crypto values were displayed incorrectly, failing to update with live market prices. Additionally, delisted tokens were reportedly trapped, with no apparent way to sell or convert them.
One investor articulated their concerns, writing, “The WazirX restructuring scheme is a big fraud. I’m surprised how the Singapore court approved this. Partial token distribution logic is weird. Why are they still holding our XRP?”
The 34% Freeze and Legal Scrutiny
In response to inquiries from The Hindu, WazirX confirmed that crypto and INR withdrawals were active, contingent on user compliance status. However, the exchange acknowledged that 34% of balances remained frozen.
A spokesperson stated, “WazirX is working in collaboration with various law enforcement agencies to freeze or hold assets based on their investigations of various cases.” This explanation did little to assuage user distrust. One X user questioned, “If you can accept deposits freely, why can’t you process withdrawals?” WazirX maintained that withdrawals were subject to due diligence and that certain tokens, such as “Rapid Listing tokens,” were subject to restrictions, a practice it described as common in the industry.
Madras High Court Intervention
Amidst the ongoing user dissatisfaction, a significant legal development occurred. On October 28, 2025, the Madras High Court ruled in favor of Rhutikumari, an investor whose 3,532.30 XRP coins, valued at approximately ₹1.98 lakh, had been frozen. The court noted that these XRP coins were unrelated to the stolen ERC-20 tokens.
Justice Venkatesh clarified, “What were held by the applicant as cryptocurrencies were 3,532.30 XRP coins. What were subjected to cyber attack… were ERC-20 coins, which are completely different.” The court rejected WazirX’s assertion that the case fell under Singapore’s jurisdiction, emphasizing that the investor had used the platform and transferred funds from Chennai.
The judgment also highlighted that Zanmai Labs Pvt Ltd, the Indian operator of WazirX, is registered with the Financial Intelligence Unit (FIU). In contrast, Zettai Pte Ltd and Binance, entities previously involved in WazirX’s ownership disputes, are not. This ruling not only protected Rhutikumari’s assets but also established a legal precedent for other Indian users seeking to challenge WazirX’s restructuring terms within India.
Recovery Tokens: A Solution or a Spectacle?
WazirX continues to assure users that it will utilize its profits to repurchase Recovery Tokens (RTs) on a quarterly basis, aiming to progressively compensate affected users. However, this approach is met with considerable skepticism.
Many investors perceive these RTs as speculative assets with uncertain value, entirely dependent on WazirX’s future performance. “They’re asking us to trust them again when trust is exactly what they destroyed,” one user remarked. While WazirX asserts that it has verified its reserves and plans to release an independent Proof of Reserves (PoR) report, users argue that verification holds little meaning if liquidity remains inaccessible.
The Irreplaceable Loss of Trust
WazirX has stated that its Indian entity, Zanmai Labs, will now manage all trading, user withdrawals, and technical operations. Arbitration disputes are to be handled under Mumbai jurisdiction, in accordance with its Terms of Use.
However, users have heard such promises before. While the exchange has reopened its doors, for many, it has not truly “returned” in a meaningful way. A widely shared post encapsulated the prevailing sentiment: once trust is lost, no whitepaper or PR campaign can effectively rebuild it.
This situation is significant for India’s crypto community, serving as a case study on the consequences when user protection, regulatory oversight, and transparency fail to align. WazirX faces a critical juncture, with its ability to regain credibility hinging not on public relations efforts, but on its capacity to restore what users have lost.
Currently, thousands of users remain logged in, closely monitoring every announcement and awaiting a single, definitive change: a “withdrawal successful” message that accurately reflects their ability to access their funds.
The Path Forward
For WazirX, this relaunch represents more than a technical reactivation; it is a crucial test of its credibility. The company has indicated that its Indian entity will now oversee all trading infrastructure, with future disputes subject to Mumbai-based arbitration. However, the primary challenge is not legal, but emotional, revolving around regaining user confidence.
WazirX once symbolized the burgeoning Indian crypto movement. Today, it stands at a critical juncture, attempting to demonstrate its capacity to rebuild the trust it has demonstrably eroded. Until users see their full balances accurately reflected and their funds accessible, official communications are likely to be met with skepticism.
The platform’s future survival depends not solely on its financial statements, but on its ability to mend the fractured confidence of its user base. For now, thousands of users remain engaged, scrutinizing every update, hoping for the simple confirmation of a successful withdrawal that genuinely reflects the recovery of their assets.