Challenges for WazirX Crypto Exchange
Indian crypto exchange WazirX is facing mounting challenges following a recent ruling by the Delhi High Court and delisting of its native token WRX by Binance.
Investigation Ordered
- The Delhi High Court ordered a fresh investigation into WazirX on Dec. 18.
- The probe was initiated due to allegations of a prior hack and financial irregularities.
- Advocate Jaivir Bains filed a petition calling for criminal proceedings against WazirX.
Breach Allegations
- Concerns arose after a July 2024 breach resulted in a loss of $235 million in crypto.
- Initial reports by Delhi police found no criminal case, but Justice Sanjeev Narula demanded an updated status report by February 2025.
- There are doubts about WazirX’s operational integrity, with allegations of involvement by a North Korean hacking group.
Binance Delisting
- Binance announced the delisting of WRX due to compliance standards.
- The delisting took effect on Dec. 25, causing a 59% drop in WRX’s value.
- Binance denied ownership of WazirX and claimed it is controlled by Zanmai Labs.
Rebuilding Efforts
- WazirX plans to relaunch its platform and introduce a decentralized exchange.
- Critics point out deficiencies in crisis management and transparency at WazirX.
- Regulatory scrutiny, financial losses, and market instability pose significant challenges for the exchange.
