In a dramatic development, the Delhi High Court has ordered a fresh investigation into the $235 million security breach on WazirX, one of the country’s leading cryptocurrency exchanges. This order comes in the wake of the investigative authorities’ inability to find criminal evidence in their initial probe. The news coincides with the announcement from Binance, one of the world’s largest cryptocurrency exchanges, that it would delist WazirX’s native token, WRX, from its platform on December 18th. This has heightened the challenges faced by WazirX in the aftermath of the hack.
The court’s directive originated from allegations of a cyber attack reportedly perpetrated by a North Korean hacking group. The group allegedly exploited vulnerabilities within the platform during July 2024, leading to the massive breach. While recovery efforts have been underway, only 57 percent of the stolen funds have been retrieved, leaving a substantial 43 percent of customer money untraceable.
Attention was also drawn to the arrest of Masud Alam, a resident of West Bengal, in November. Reports suggest that Alam signed up for a fake account, which was later sold to a hacker via the Telegram platform to compromise WazirX. The actual perpetrator of the attack remains at large, escalating pressure on law enforcement agencies to deliver results.
Meanwhile, the decision by Binance to suspend WRX listings came as a response to WazirX’s failure to meet operational norms. Binance, which has consistently denied having an ownership stake in WazirX, contends that the troubled exchange platform operates under Indian laws by Zanmai Labs. The impending delisting, scheduled for December 25, has already triggered a 51% drop in the value of WRX. With operational integrity concerns looming, investor confidence in the platform continues to decline.
However, amid the turmoil, WazirX has announced plans to relaunch the platform, focusing on improved service and increased transparency. In its 5th town hall meeting, the company outlined a recovery-oriented strategy, with plans to create a new-age decentralized exchange (DEX). Despite the challenges, WazirX remains determined to recover from the setback, promising its customers an improved and safer platform.
The unfolding story of WazirX’s security breach, the subsequent investigation, and the delisting by Binance, raises critical questions about digital security, regulatory compliance, and investor protection in the growing world of cryptocurrencies. As the investigation continues and WazirX strives to rebuild, the cryptocurrency community will be watching closely, awaiting further developments.
