WazirX faces a fresh investigation into the $235M hack and Binance delisting WRX tokens, shaking market confidence - IcoHolder.
The Delhi High Court has ordered a fresh investigation into the $235 million hack of cryptocurrency exchange WazirX, adding a new layer of scrutiny to the embattled platform. This development comes as Binance announced plans to delist WazirX’s native token, WRX, on December 25, further shaking market confidence in the exchange.
The investigation focuses on a massive cyber attack in July 2024, allegedly orchestrated by a North Korean hacking group. Exploiting vulnerabilities in WazirX’s systems, the hackers stole $235 million in customer funds. While 57% of the stolen assets have been recovered, 43% remain unaccounted for, intensifying concerns among users and regulators.
In November, authorities arrested Masud Alam, a West Bengal resident accused of facilitating the breach by selling a fraudulent account to a hacker via Telegram. However, the mastermind behind the attack remains at large, prompting the court to demand a deeper probe into the incident.
Binance’s decision to delist WRX tokens has dealt a significant blow to WazirX. The delisting, scheduled for December 25, is attributed to operational shortcomings at WazirX, which Binance has consistently distanced itself from, citing legal and managerial independence under Zanmai Labs.
The announcement has already caused WRX’s value to plummet by over 51%, amplifying concerns about the platform’s future. Binance’s move is seen as a major setback for WazirX, signaling diminishing confidence in its operational integrity.
In the face of mounting challenges, WazirX has outlined plans for a significant overhaul. The company has announced the relaunch of its platform, promising enhanced services, improved security, and greater transparency. Central to this strategy is a pivot towards a decentralized exchange (DEX) model, which WazirX envisions as the cornerstone of its “new-age” operational philosophy.
To rebuild trust and engage its community, WazirX has scheduled its fifth town hall meeting, where it will detail its recovery strategy and address user concerns.
The court-mandated investigation and Binance’s WRX delisting underscore the severe challenges WazirX faces as it struggles to recover from the breach. While its plans for a decentralized model and improved services offer a glimpse of hope, market confidence remains shaken.
For WazirX, regaining its footing will depend on its ability to address security lapses, recover the remaining stolen funds, and rebuild user trust. The coming months will be critical for the exchange as it navigates a complex web of legal, operational, and market challenges.
