The WazirX Hack of 2024: A Deep Dive into India’s Biggest Crypto Heist
On July 18, 2024, India’s largest cryptocurrency exchange, WazirX, was hit by a devastating cyberattack that shook the crypto community. Hackers made off with approximately $235 million (around ₹2000 crore), marking one of the largest crypto heists in history. Attributed to North Korea’s notorious Lazarus Group, this breach exposed vulnerabilities in even the most trusted platforms and sparked heated discussions about crypto security and regulation in India. As of August 1, 2025, recovery efforts are ongoing, with a critical revote on a restructuring plan in progress. This article unpacks the hack, its fallout, and what it means for the future of crypto in India, blending insights from recent developments and expert analysis.
Table of Contents
What Happened? The WazirX Hack Explained
The WazirX hack targeted the exchange’s multisig wallet, a supposedly secure system requiring multiple signatures for transactions. According to reports, hackers—believed to be the Lazarus Group—exploited a flaw by altering the wallet’s smart contract. This allowed them to bypass WazirX’s security protocols, draining both hot and cold wallets without needing the exchange’s keys. The attackers created a fake WazirX account, deposited tokens, and purchased Gala (GALA) tokens before executing the heist.
The numbers are staggering. WazirX’s proof-of-reserves in June 2024 showed $500 million in digital assets, meaning the hack wiped out nearly half of its holdings. Over 15 million investors were affected, many facing significant financial losses. Trading was halted immediately, and the exchange’s response has been under scrutiny ever since.
| Key Details of the Hack | Information |
|---|---|
| Date | July 18, 2024 |
| Amount Stolen | ~$235 million (₹2000 crore) |
| Perpetrators | Lazarus Group (attributed by U.S., Japan, South Korea) |
| Method | Smart contract alteration in multisig wallet |
| Impact | Trading suspended, 15M investors affected |
The Fallout: Investor Panic and Legal Battles
The immediate aftermath was chaotic. Investors, many of whom had parked their life savings in WazirX, were left in limbo as wallets were frozen. Social media platforms like X buzzed with frustration, with users like @earnwithsapna highlighting the need for stricter crypto regulations in India, citing past scams and the WazirX debacle. The Delhi High Court criticized WazirX’s handling of the situation, emphasizing accountability, while rival exchange CoinSwitch filed a lawsuit on August 29, 2024, seeking recovery of $9.65 million in trapped funds.
The hack also reignited debates about India’s crypto regulatory framework. Former Finance Secretary Subhash Garg, as noted in a July 22, 2025, X post, called for urgent regulation to protect investors from such incidents. The lack of clear guidelines has left exchanges like WazirX navigating a murky legal landscape, complicating recovery efforts.
Recovery Efforts: A Rocky Road to Redemption
WazirX didn’t sit idle. The exchange launched a recovery plan, including a Scheme of Arrangement to compensate affected users. By April 2025, over 93% of creditors approved the plan, which aimed to distribute recovery tokens covering 75-85% of lost funds, financed by net profits. However, discrepancies in recovery estimates—ranging from 75% (per Coin Edition) to 85% (per The Hindu)—have fueled skepticism.
Legal hurdles further complicated matters. The Singapore High Court, overseeing WazirX’s restructuring, ordered a revote on an amended scheme on July 16, 2025, after setting aside a June 2025 order. The revote, announced via WazirX’s official X account , is underway from July 30 to August 6, 2025. If approved, token distribution could begin within 10 business days, offering hope to investors.
WazirX also froze $3 million in stolen USDT by January 2025 and offered a $23 million bounty for information leading to fund recovery. A forensic audit, promised by Q3 2025, aims to shed light on the hack’s mechanics, as outlined in WazirX’s official blog.
Recovery Timeline
| Date | Event |
|---|---|
| July 18, 2024 | Hack occurs, trading suspended. |
| Jan 18, 2025 | WazirX freezes $3M USDT of stolen funds. |
| Apr 8, 2025 | Creditors approve Scheme of Arrangement (93% approval). |
| Jul 16, 2025 | Singapore High Court orders revote on amended scheme. |
| Jul 30–Aug 6, 2025 | Revote on recovery plan ongoing, distribution expected within 10 days if approved. |
Visualizing the Hack’s Impact
To grasp the scale of the WazirX hack compared to other major crypto heists, consider the chart below. It compares the financial losses of notable exchange hacks, highlighting WazirX’s place among them.
This chart underscores that while WazirX’s loss was significant, it’s not the largest in crypto history. However, its impact on India’s nascent crypto market is profound, given WazirX’s dominance.
What’s Next for WazirX and Indian Crypto?
As the revote continues, WazirX is planning to restart operations with enhanced security features, as noted in a Mudrex article. The exchange is also exploring a potential shift to Panama, though it remains under Singapore’s legal oversight. Investors, however, are restless. Many, as reported by The Hindu, suspect an inside job due to the multisig wallet’s complexity and are pushing to unfreeze wallets for trading amid bullish market expectations.
The broader implications are clear: India needs robust crypto regulations. The WazirX hack, combined with past scams, has eroded trust, and without clear guidelines, investor confidence may wane further. The government’s stance remains cautious, but the incident could accelerate policy changes, as suggested by CoinDesk.
Lessons Learned: Securing the Future
The WazirX hack is a stark reminder of the risks in crypto investing. For users, it underscores the importance of diversifying holdings, using cold wallets, and staying informed about exchange security practices. For exchanges, it highlights the need for rigorous audits, transparent communication, and advanced security protocols like multi-factor authentication and regular smart contract reviews.
As WazirX navigates its recovery, the crypto community watches closely. Will the exchange regain trust? Can India’s crypto market rebound? The answers hinge on the revote’s outcome and the industry’s ability to adapt. For now, investors are advised to stay updated via WazirX’s official channels for real-time insights.
Frequently Asked Questions(FAQs) About the WazirX Hack
What happened in the WazirX hack of 2024?
The WazirX hack occurred on July 18, 2024, when hackers, attributed to North Korea’s Lazarus Group, stole approximately $235 million (₹2000 crore) by altering the smart contract of WazirX’s multisig wallet. This allowed them to drain both hot and cold wallets, impacting 15 million investors and leading to a trading suspension.
Who was behind the WazirX hack?
The hack was attributed to the Lazarus Group, a North Korean cybercrime syndicate, as confirmed by the U.S., Japan, and South Korea in January 2025. The group is known for targeting crypto exchanges to fund illicit activities.
How much money was stolen in the WazirX hack?
Hackers stole around $235 million, equivalent to ₹2000 crore, which was nearly half of WazirX’s $500 million in digital assets reported in June 2024.
Is WazirX recovering funds for affected users?
Yes, WazirX proposed a Scheme of Arrangement to compensate users, with 75-85% recovery tokens expected, financed by net profits. A revote on an amended scheme is ongoing from July 30 to August 6, 2025, with potential token distribution within 10 business days if approved.
When will WazirX resume trading after the hack?
WazirX has not announced a specific date for resuming trading but is planning to restart operations with enhanced security features, as noted in recovery updates. The focus remains on the ongoing revote and token distribution.
How did the WazirX hack affect Indian crypto investors?
The hack impacted 15 million investors, freezing their wallets and causing significant financial losses. Many expressed frustration on platforms like X, demanding wallet unfreezing and clearer regulations to prevent future incidents.
What is the Lazarus Group, and why did they target WazirX?
The Lazarus Group is a North Korean hacking collective known for high-profile crypto heists. They targeted WazirX likely due to its large asset base and India’s growing crypto market, aiming to fund North Korea’s weapons and missile programs.
Are there any legal actions related to the WazirX hack?
Yes, CoinSwitch sued WazirX on August 29, 2024, for $9.65 million in trapped funds. The Delhi High Court criticized WazirX’s response, and the Singapore High Court is overseeing the restructuring, with a revote ordered in July 2025.
What is WazirX doing to prevent future hacks?
WazirX is implementing enhanced security features for its planned operational restart and has committed to a forensic audit by Q3 2025 to investigate the hack’s mechanics, as per their official blog.
How can WazirX users stay updated on recovery efforts?
Users can follow WazirX’s official X account and check their official blog for updates on the revote, token distribution, and townhall webinars, such as the Ninth Creditor Townhall announced on July 29, 2025.
