WazirX hack still haunts investors a year later as resolution drags on

It has been nearly a year since cryptocurrency exchange WazirX was hacked, leading to investor losses of approximately $230.8 million. Following the incident, the exchange ceased operations and began reorganising under a new Singapore-based entity. The aftermath has been dominated by litigation, court proceedings, and unresolved investor claims.Chirayu Bagree of 9Point Capital, an affected investor, described the past year as a frustrating period of “knocking on closed doors.” Highlighting the uneven treatment of assets post-hack, he said his holdings—particularly XRP tokens, which were not hacked—have significantly appreciated in value.

However, WazirX is allegedly using unhacked assets to compensate victims of the hack, which he sees as a violation of fundamental rights and a mismanagement of user funds.

In contrast, he pointed to CoinDCX’s recent hack, where investor assets were restored within 24 hours—demonstrating that a swift and transparent resolution is possible.
Digital payments expert Sanjay Saxena raised concerns over the lack of clarity in WazirX’s resolution process. He noted unresolved questions regarding ownership and asset rights, particularly since the process does not align with conventional creditor resolution mechanisms like those seen under India’s NCLT framework.He stressed that crypto is not a mutual fund and needs a dedicated regulatory framework to protect investor rights.

IndiaTech.org President and CEO Rameesh Kailasam echoed the need for a structured approach to digital asset resolution. He emphasised the importance of governance, standards, and legal procedures—especially as other jurisdictions begin implementing Digital Asset Resolution Packages (DARPs).

According to Kailasam, investors are not only chasing high returns but also seeking the security and transparency of a mature, well-regulated market.

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