Indian cryptocurrency exchange WazirX is facing a series of challenges following a recent order from the Delhi High Court for a fresh investigation into the platform. This development coincided with Binance’s decision to delist WazirX’s native token WRX, further adding to the exchange’s troubles.
The investigation was prompted by allegations of a previous hack and concerns regarding financial irregularities on the platform. This heightened scrutiny is a cause for concern for WazirX, as it brings into question the exchange’s operational integrity.
The court’s directive came after Advocate Jaivir Bains filed a petition seeking criminal proceedings against WazirX in connection with a breach in July 2024 that resulted in a loss of $235 million in cryptocurrency. While initial reports from the Delhi police did not find sufficient evidence for a criminal case, Justice Sanjeev Narula demanded an updated status report by February 2025.
The investigation has raised doubts about WazirX’s handling of the breach, especially with allegations linking a North Korean hacking group to the incident. Despite efforts by cybersecurity firm Cyfirma to recover some of the funds, the exchange admitted that 43% of customer funds remain unrecoverable.
In a separate development, Binance announced the delisting of WRX due to compliance issues. This decision, effective December 25, led to a significant drop in WRX’s value and has further shaken investor confidence in the exchange. Binance has also distanced itself from WazirX, claiming that the exchange is controlled by Zanmai Labs, which falls under the jurisdiction of India’s Financial Intelligence Unit.
As WazirX navigates these challenges, the exchange has outlined plans to revamp its platform and introduce a decentralized exchange. However, critics have pointed out shortcomings in WazirX’s crisis management and transparency practices. The court’s decision to order a fresh investigation underscores the seriousness of the allegations and raises uncertainties about the future of WazirX.
Despite its efforts to rebuild and enhance services, WazirX faces a daunting task ahead with regulatory scrutiny, financial losses, and market volatility posing significant obstacles for the once-prominent exchange. It remains to be seen how WazirX will overcome these challenges and regain stability in the cryptocurrency market.
Mentioned in this article:
- WazirX
- Binance
- WRX
- Delhi High Court
- Cyfirma
- Zanmai Labs
- Financial Intelligence Unit