WazirX Files Scheme with ARCA, Platform to Restart in 10 Days

Key Highlights: 

• WazirX filed its court-sanctioned Scheme of Arrangements with ARCA yesterday, October 15, 2025.
• WazirX will restart within 10 business days from the scheme’s effective date. 
• Users will receive crypto and Recovery Tokens as a part of the distribution process.

WazirX, the Indian crypto exchange, is now ready to resume operation within 10 business days from October 15, 2025. The exchange’s parent company Zettai Pte Ltd, filed the approved Scheme of Arrangement with Singapore’s ARCA on October 15, following the Singapore High Court’s approval. This clears the way for implementation, and allows affected users to receive fund distribution and Recovery Tokens via the approved plan.

Backstory: The 4 Million Cyberattack and Aftermath

Back in July 2024, WazirX faced one of India’s largest crypto exchange hacks, where the attacker was able to exploit a Safe Multisig wallet and stole around $234 million. This breach affected thousands of users and the exchange had to force an immediate suspension of trading and withdrawal services, which has remained offline ever since. The hack led to a 15-month forensic investigation, collaboration with police, and creditor negotiation to develop a recovery and restructuring plan that was agreed upon by the exchange and the users.

The parent company, Zettai, was responsible for creating a Scheme of Arrangement so that it could reimburse users with a mix of cryptocurrency and Recovery Tokens that would represent the future platform profits. This plan was studied with great scrutiny before it could be implemented by the creditors and the Singapore High Court. The scrutiny was important to make sure that there is fairness with the proposed plan, especially for the creditors.

In August 2025, creditors conducted a revote, and showed about 95.7% support, covering nearly $196 million in claims, a strong endorsement for the recovery strategy.

Court Approval and Next Steps

In this month itself, the Singapore High Court sanctioned the restructuring scheme (case HC/SUM 940/2025), approving the creditor-backed plan with some changes. These changes included refining the dual compensation mode, where users will receive part of the recovery in cryptocurrencies and the rest of it through Recovery Tokens.

These tokens will be linked to the exchange’s future profits, strengthening asset custody through a partnership with BitGo, and aligning repayment flows with its Indian entity, Zanmai Labs, for regulatory clarity. The revised scheme gained a great support from the creditors (nearly 96% voted in favor of the scheme), which cleared the path for WazirX’s relaunch.

This sanction is one of the fastest in crypto space, even though the scale of WazirX hack was huge.

After approval, Zettai filed the court approval with ARCA on October 15, 2025, which was the last administrative step before the relaunch. WazirX confirmed that full operations, which includes trading and withdrawals, will resume within 10 business days of the scheme date.

With the restart, affected users will start receiving partial recoveries estimated at 75-80% of their claims. About 52% will be paid in existing cryptocurrencies that are held by the exchange, while the rest of 23-28% will be issued in Recovery Tokens, which are tradeable and tied to WazirX’s future growth. This dual model is designed in such a way that it provides near-term liquidity and long-term recovery potential.

Security Enhancements and Future Outlooks

WazirX has partnered with BitGo to increase the security and safeguard the user funds ahead of its relaunch. With this collaboration, advanced security measures are introduced to prevent future breaches. The relaunch will also focus on a transparent operational model, designed to adapt to the post-hack environment.

Founder Nischal Shetty and the platform thanked the community for their support and expressed his plans to build user trust again.

Market Reaction

The official announcement from WazirX indicates a structured approach to the relaunch, with a clear timeline for the restart and distribution. However, community reactions suggest a mix of cautious optimism and skepticism, particularly concerning the fairness and transparency of the Recovery Tokens over Reddit, X and Discord. It is being said that the next few days will be critical in determining user trust.

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