WazirX appears to be entering a new phase of recovery following the massive cyberattack that disrupted the exchange in 2024. According to the latest update, the platform has made significant progress after a court-approved restructuring process involving its Singapore-based parent entity, Zettai Pte Ltd. While this marks an important step toward operational normalization, the withdrawal picture remains uneven: INR withdrawals are partially available, but most crypto withdrawals are still restricted.
From major hack to legal restructuring
The crisis began in July 2024, when WazirX suffered a security breach that resulted in the loss of more than $235 million in crypto assets. The incident was attributed to the North Korean hacking group Lazarus Group. In the aftermath, the exchange suspended trading and withdrawals, leaving users unable to freely access their assets while management pursued a legal and financial recovery process.
The restructuring was carried out through a Scheme of Arrangement, a formal process designed to address liabilities and create a framework for user repayment and platform recovery. Based on the published update, the plan aims to return approximately 75% to 80% of user funds, followed by a relaunch of exchange operations. The approval of this framework by the Singapore High Court is being presented as a key milestone in WazirX’s path back.
What withdrawals are working now?
The latest guidance indicates that fiat withdrawals in INR have been partially restored. That is a notable change for users who have been waiting since the fallout from the hack. However, the situation for digital assets is still far more constrained. Most crypto withdrawals remain paused or heavily restricted due to the lingering effects of the attack, the platform’s internal controls, and the broader restructuring process.
In practical terms, users can no longer assume a full return to normal withdrawal functionality across all asset classes. Instead, the exchange is taking a phased approach, prioritizing risk controls, user verification, and incremental restoration of access. The update advises users to monitor WazirX’s official blog and X account for asset-specific timelines and future announcements on crypto withdrawal eligibility.
What users need to do before withdrawing
For users attempting to withdraw available balances, the platform outlines a straightforward but controlled process. First, account holders should log in and confirm that their KYC information is fully updated. Next, they should review their balances in the Funds section to verify whether they hold withdrawable INR or assets that may become eligible later.
To initiate a withdrawal, users must navigate to the relevant withdrawal section and follow on-screen instructions. For larger transactions, they should be prepared for additional verification or security checks. Once a request is submitted, users are encouraged to track status updates through the platform and, if necessary, raise support tickets. That said, support response times may still be slower than ideal given the complexity of the ongoing recovery effort.
Why crypto withdrawals are still mostly blocked
The update makes clear that the restriction on crypto withdrawals is not simply a technical delay. It is tied to the broader consequences of the 2024 security breach, including security reviews, legal oversight, and operational restructuring. In other words, WazirX is not reopening digital asset withdrawals all at once because the platform is still functioning under heightened controls.
This distinction matters. Partial restoration of fiat access does not mean the exchange has fully returned to pre-incident operations. Instead, WazirX appears to be rebuilding its withdrawal infrastructure under a more cautious framework, likely aimed at reducing further risk and aligning platform operations with the court-approved recovery roadmap.
Tax and compliance considerations
The update also notes that users in India may face capital gains tax implications when withdrawing crypto assets. While the article does not provide detailed tax calculations or legal advice, it does caution users to consult a tax professional before making withdrawal decisions. That is especially relevant for users who may be dealing with partial recoveries, asset transfers, or other scenarios that could create taxable events under Indian law.
Compliance remains central to the entire process. Updated KYC records, correct bank details, and accurate wallet information are not just administrative requirements—they are likely essential for reducing delays and preventing avoidable withdrawal failures as the platform scales back into operation.
A turning point, but not a full reset to normal
WazirX’s latest status update suggests that October 2025 represents a major turning point for the exchange after more than a year of disruption. The court-approved restructuring and the planned relaunch signal that recovery is no longer theoretical. Even so, the company is effectively asking users to view the reopening as a reset rather than a full restoration of business as usual.
That framing is important. A platform emerging from a high-profile hack and legal restructuring is unlikely to restore all services immediately or uniformly. Instead, users should expect staggered functionality, ongoing oversight, and periodic announcements clarifying what is available and what remains restricted.
What to watch next
For now, the clearest takeaway is that WazirX is moving forward, but cautiously. Users who want to access funds should ensure their accounts are fully verified, check whether INR withdrawals are available to them, confirm that bank and wallet details are current, and follow official updates closely. For crypto holders, patience is still necessary, as most digital asset withdrawals remain under controlled suspension pending further notice.
The broader significance of the update is that WazirX has shifted from a frozen post-hack state into a managed recovery phase. That does not eliminate user frustration or uncertainty, but it does provide a clearer framework: partial INR access now, broader restoration later, and full crypto withdrawal recovery still pending phased implementation. For affected users, that may not be the end of the story, but it is the strongest signal yet that the exchange is preparing to return in a more structured and legally supervised form.