The news surrounding the WazirX hack has taken a dramatic turn. The Delhi High Court has mandated a fresh investigation into the massive $235 million security breach. This decision follows the police’s inability to uncover any criminal evidence during their initial inquiry. Coinciding with this legal development, Binance has announced its intention to delist WazirX’s native token, WRX, on December 18th. This move adds another layer of challenges for the beleaguered exchange.
Allegation of Fraud and North Korea Involvement
The court’s directive is linked to a cyber attack allegedly orchestrated by a North Korean hacking group. This group reportedly exploited vulnerabilities within the platform during July 2024. Despite efforts to recover the stolen funds, only 57% of the total amount has been retrieved. This leaves 43% of the stolen customer funds untraceable, a significant concern for affected users. The investigation has also brought attention to Masud Alam, a resident of West Bengal, who was arrested in November. Alam is accused of registering a fake account on the platform, which was then sold to a hacker via the Telegram app. The primary perpetrator of this attack remains at large, intensifying pressure on law enforcement to deliver results.
Of Binance, Delisting, and WRX Impacts
Shortly after the court’s ruling, Binance announced its decision to suspend WRX listings, citing the company’s failure to adhere to operational standards. Although Binance has consistently denied owning WazirX, it acknowledges that the platform operates under Indian laws through Zanmai Labs. The impending delisting, scheduled for December 25, has already elicited strong market reactions, with the value of WRX plummeting by over 51% at the time of writing. This has further fueled concerns about operational integrity, leading to a decline in investor confidence in the platform.
A Path to Recovery?
In response to these challenges, WazirX has announced plans to revitalize the platform with a focus on enhanced service and greater transparency. The exchange has scheduled its fifth town hall meeting, outlining its vision for recovery. Central to this strategy is the development of a new-age decentralized exchange (DEX), aimed at rebuilding trust and ensuring long-term sustainability.
FAQs
What Happened to WazirX?
WazirX experienced a significant $235 million hack, reportedly linked to North Korean hackers. The Delhi High Court has ordered a new investigation into the incident.
How to Withdraw Money From WazirX?
Users can withdraw their funds, though delays may occur due to ongoing recovery efforts and operational challenges following the hack.
