January 27, 2025 – WazirX, a prominent Indian cryptocurrency exchange, has obtained court approval in Singapore to reimburse victims of its $235 million hack, marking a significant step forward in restoring user confidence and addressing security vulnerabilities within the crypto industry.
The WazirX Breach and Response
On July 18, 2024, WazirX fell victim to a cyberattack orchestrated by the Lazarus Group, a North Korean hacking collective. Exploiting vulnerabilities in the exchange’s multisignature wallet managed via Liminal’s custody infrastructure, hackers made off with digital assets exceeding $230 million. The breach temporarily compromised WazirX’s ability to maintain collateral parity.
— WazirX: India Ka Bitcoin Exchange (@WazirXIndia) July 18, 2024
Update: We're aware that one of our multisig wallets has experienced a security breach. Our team is actively investigating the incident. To ensure the safety of your assets, INR and crypto withdrawals will be temporarily paused. Thank you for your patience and understanding.…
Following the attack, WazirX launched comprehensive recovery efforts, including filing complaints with Indian cybercrime authorities and reaching out to over 500 exchanges to freeze the stolen assets. Additionally, a bounty program was introduced, offering up to $10,000 in USDT for intelligence aiding asset recovery.
Court-Approved Repayment Scheme
On January 23, 2025, the Singapore High Court authorized WazirX’s repayment plan, enabling up to 80% recovery for affected users. The plan, initiated by parent company Zettai Pte Ltd., involves restructuring liabilities under the Insolvency, Restructuring, and Dissolution Act of 2018. Zettai also committed to providing audited financial statements, independent verification of assets, and detailed user balances before the scheme’s creditor voting process.
A Global Wake-Up Call
A joint statement by the U.S., South Korea, and Japan attributed the attack to Lazarus Group, sparking calls for stricter regulations and global collaboration. Meanwhile, WazirX remains committed to user recovery, freezing $3 million in assets and working toward a decentralized relaunch.
This case highlights the importance of transparency and proactive measures in rebuilding trust within the crypto sector. As WazirX progresses toward its relaunch, the platform’s efforts may serve as a benchmark for addressing future digital asset breaches.
