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After its Singapore-based restructuring exercise, cryptocurrency exchange WazirX resumed operations from October 24, but multiple customers have questioned their steep losses or complained that they are unable to freely withdraw their assets.
In response to The Hindu’s queries, WazirX confirmed that crypto withdrawals as well as INR withdrawals were both open, based on the compliance status of users, and that 85% of users’ funds had been distributed to them.
All crypto-to-crypto trading pairs went live earlier this week.
However, multiple customers have taken to social media platforms such as X and Telegram to complain that the value of their crypto funds was far less than expected. One reason for this is the volatility of cryptocurrency prices, with a number of ups and downs taking place since WazirX’s rebalancing process for customer holdings, which was carried out this January.
While some coins and tokens have rallied in the months after the rebalancing, others have crashed, leading to confusion among multiple customers who feel they have received far less than what they invested.
In addition to this, WazirX confirmed that around 34% of INR balances were currently frozen and not immediately available for withdrawal.
“WazirX is working in collaboration with various law enforcement agencies (“LEAs”) to freeze or hold assets based on their investigations of various cases,” said a spokesperson.
Some users have complained they are unable to withdraw their crypto even after the exchange restarted operations. This could be due to WazirX’s terms as well as Indian regulations, which can restrict Indian rupees being withdrawn as cryptocurrencies.
“The ability to make a withdrawal is subject to any prevailing limitations of withdrawal of certain tokens such as Rapid Listing tokens. It is a common practice amongst crypto exchanges in India, withdrawals will be open for users who have not made INR deposits, who have completed enhanced due diligence,” said WazirX.
The crypto exchange said it completed the independent verification of its assets in January this year, around 10 months ago, with the assessment carried out by Alvarez & Marsal Disputes & Investigations Pte Ltd.
“It verified the existence, control, and quantity of the Net Liquid Platform Assets, which include token assets custodied with BitGo, in four major cryptocurrency exchanges and 9 cold wallet addresses, totaling USD equivalent (USD) 478.5 million as of January 17, 2025, and the Illiquid Platform Assets, which include, among others, the Stolen Assets and Illiquid Wallet Assets,” said WazirX, noting that it planned to engage further in an independent Proof of Reserves (PoR) report.
WazirX said that its Indian entity would oversee the complete crypto exchange operations. Core activities such as crypto-to-crypto trading, user withdrawals, and technical operations will be handed over to Zanmai to ensure faster payouts to creditors, per the company.
“Further, the seat and venue of the arbitration is governed by the terms and conditions as stipulated by the Terms of Use. The seat and venue of the arbitration shall be Mumbai, India,” confirmed WazirX.
In July 2024, cryptocurrency exchange WazirX experienced the security breach of a multi-signature wallet it maintained with Liminal, leading to the loss of more than $230 million in assets. The company faced criticism for its delay in updating customers, its decision to lock their crypto funds after the breach, its choice to not immediately compensate customers, and its move to pursue restructuring through a foreign legal system.
“In order to compensate creditors, we are issuing Recovery Tokens. WazirX will purchase Recovery tokens based on profits and recovery efforts every quarter, starting from the date of issue of RT tokens,” said a WazirX spokesperson to The Hindu, adding that the company was also working on the recovery of the stolen assets.
Published – October 30, 2025 02:52 pm IST
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