WazirX, a prominent Indian cryptocurrency exchange, is currently facing significant challenges following a recent order from the Delhi High Court to conduct a fresh investigation into the platform. This development coincided with Binance’s announcement to delist WazirX’s native token WRX, adding to the mounting pressure on the exchange.
The investigation was prompted by allegations of a previous hack and concerns regarding financial irregularities, indicating heightened scrutiny on WazirX. The court’s decision followed a petition filed by Advocate Jaivir Bains seeking criminal action against WazirX in connection with a $235 million crypto loss resulting from a breach in July 2024.
Although initial reports from Delhi police did not find sufficient evidence for a criminal case, Justice Sanjeev Narula disagreed and mandated an updated status report by February 2025, signaling ongoing doubts about WazirX’s operational integrity. The exchange faced allegations of involvement with a North Korean hacking group, leading to a partial recovery effort by cybersecurity firm Cyfirma, with 43% of customer funds remaining unrecoverable.
Binance Delisting
In a parallel development, Binance announced the delisting of WRX due to compliance standards non-compliance, effective December 25. This decision resulted in a 59% decline in WRX’s value and raised concerns about investor confidence. Binance also refuted claims of ownership of WazirX, stating that the exchange is controlled by Zanmai Labs under the jurisdiction of India’s Financial Intelligence Unit.
While WazirX aims to restore stability by relaunching its platform and introducing a decentralized exchange, critics have pointed out deficiencies in its crisis management and transparency. The demand for a fresh investigation by the court underscores the seriousness of the allegations and raises uncertainties about WazirX’s future.
Despite WazirX’s commitment to enhancing services and rebuilding, the combination of regulatory scrutiny, financial losses, and market volatility poses a formidable challenge for the once-prominent exchange.
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