WazirX Shutdown Ends As UK Watchdog Targets HTX

Key Takeaways

• The WazirX shutdown has officially concluded, with the exchange reopening and offering special zero-fee trading to restart user activity.

• The roll-out of rupee-paired trading begins with USDT as the first step in rebuilding operations.

• The UK’s FCA is taking aggressive action against unregistered exchanges, exemplified by the lawsuit against HTX.

• Russia and the EU are both stepping up regulation and sanctions in the crypto sphere—highlighting geopolitical risk and regulatory evolution.

• Corporate interest in Bitcoin treasuries persists, though companies adopting this approach must manage valuation and volatility risk carefully.

WazirX Shutdown Ends After Major Hack

What Happened

The WazirX shutdown finally concluded when CEO Nischal Shetty announced reopening on October 24th. The exchange will initially offer zero-fee trading for the first 30 days, and it will recommence trading pairs in Indian rupees, starting with the stablecoin Tether (USDT).

The shutdown stemmed from a massive mid-2024 hack, during which the hacker group known as ‘Lazarus Group’ (linked to the North Korean government) stole approximately US$240 million in crypto assets from WazirX.

Before the hack, the platform reportedly held about US$500 million in assets, meaning nearly half was compromised.

The Aftermath & Restructuring

Following the hack, WazirX underwent a major restructuring via its Singapore-based parent company, Zettai, with proceedings approved by the Singapore High Court on October 13th.

Source: X (@NischalSchetty)

Some creditors remain unhappy: for example, Indian crypto-app CoinSwitch is still litigating WazirX and recently had its US$5.4 million claim upheld by the Bombay High Court.

UK’s FCA Sues HTX For Unregistered Operations

In another story of regulatory enforcement, the UK’s Financial Conduct Authority filed a lawsuit on October 22nd against the crypto exchange HTX (formerly Huobi), owned by Justin Sun. The FCA alleges HTX breached the UK’s financial promotions regime by offering services in the UK without registration or licensing.

This action underscores the regulator’s broad crackdown on unregistered crypto platforms servicing UK clients, especially after the recent regulatory shift permitting crypto exchange-traded notes.

Corporate Bitcoin Treasuries Keep Growing

In the US, data-services firm Hyperscale Data revealed a US$60 million Bitcoin treasury (approximately 66 % of its market valuation) as of October 19th.

Its subsidiary, Sentinum, holds about US$16 million in Bitcoin and has US$43 million in cash earmarked for further Bitcoin purchases. Hyperscale’s executive chairman emphasised their disciplined dollar-cost-averaging strategy, pointing to a more mature corporate approach to bitcoin holdings.

While some companies investing in Bitcoin face valuation risk if price volatility drags them below treasury value, the corporate Bitcoin treasury trend remains strong, with firms such as Strategy Shares LLC, Coinbase Global and the media company of the Donald Trump family among the largest holders.

The Top 10 Bitcoin Treasury Companies Include Coinbase, Strategy, & The Trump Family

Source: BitcoinTreasuries.NET

Russia & EU: Crypto Regulation & Sanctions

New Rules In Russia

Meanwhile, in Russia the Ministry of Finance of the Russian Federation is reportedly preparing sweeping new regulations for the crypto sector, including laws tackling cross-border crypto payments and curbing crypto-based capital flight.

These measures follow an experimental regime introduced by the Russian central bank which allows crypto for import payments but bans all other crypto payments.

EU Moves To Block Crypto-Sanction Evasion

At the same time, the European Council passed its 19th sanctions package on Russian entities and crypto tools, including the stablecoin A7A5, which it says has been used “as a prominent tool for financing activities supporting the war of aggression.”

As of October 26th, 2025, transactions and provision of related services are now prohibited across the EU.

FAQ

What was the “WazirX shutdown”?

The term “WazirX shutdown” refers to the suspension of operations by WazirX following a major hack in 2024 which led to the loss of roughly US$240 million in user assets. The exchange remained offline for over a year while it restructured.

When did WazirX resume trading?

WazirX announced its reopening on October 24th, with promotional zero-fee trading for the first 30 days and a phased restart of rupee-paired trades beginning with USDT.

Why is the FCA suing HTX?

The UK regulator alleges that HTX offered crypto services in the UK without being licensed, thereby breaching the UK’s financial promotions rules and exposing UK consumers to unregulated risk.

How do the Russia and EU developments relate?

Russian regulators intend to tighten crypto controls to prevent illicit cross-border flows, while the EU is targeting crypto instruments used to circumvent sanctions—especially related to Russian aggression.

Why are companies buying Bitcoin treasuries?

Companies are increasingly adopting bitcoin as part of treasury management, aiming to benefit from long-term price appreciation, diversification, and disciplined entry strategies despite volatile markets.