The Indian cryptocurrency exchange WazirX is grappling with ongoing legal challenges after a substantial cyberattack resulted in the theft of over $230 million worth of assets as of July 2025.
The incident has raised concerns about user asset security and regulatory oversight, impacting user withdrawals and prompting discussions on the responsibilities of crypto exchanges in safeguarding investor funds.
WazirX Asset Theft Exceeds $230 Million in 2025
The WazirX cyberattack led to significant asset theft, involving the loss of over 200 cryptocurrencies, like SHIB and ETH. Affected users face withdrawal suspensions, and community trust is at stake as the exchange proposes operational changes.
Leadership under Nischal Shetty has proposed transitioning operations to Zensui Corporation in Panama. This move aims to navigate ongoing legal challenges while maintaining services, though user withdrawal frustrations remain a pressing issue.
Delhi High Court and RBI Increase Scrutiny
The attack resulted in a reduction in reserves, affecting nearly half of on-platform assets. Regulatory notifications have been made, and further scrutiny from the Delhi High Court and the Reserve Bank of India has prompted debates over regulatory roles.
The potential issuance of “recovery tokens” to compensate affected users is under consideration. Historical exchange hacks reveal varied responses, highlighting the potential need for domestic regulatory frameworks to address user protection comprehensively.
If someone from the dark web breached your platform, you cannot say sorry…I am curious to know if the government will wash its hands of in its affidavit.
Judge Sachin Datta from the Delhi High Court emphasized, highlighting expectations for a definitive resolution.
Comparison with Mt. Gox and Coincheck Breaches
The WazirX event mirrors cases like Mt. Gox and Coincheck, reflecting similar challenges in recompense and user trust restoration. Comprehensive responses are essential to mitigate customer exodus and rebuild credibility.
Experts suggest enhanced legal and regulatory frameworks, emphasizing that similar incidents prompt the need for stringent security protocols and policies. Affected exchange users historically rely on legal recourse or innovative recovery solutions like recovery tokens.
Nischal Shetty, CEO of WazirX, stated, “We don’t just want to recover from the cyberattack; we want to rebuild trust and get the platform running again… Our aim has always been clear: doing right by everyone who placed their trust in us.”
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