Indian crypto exchange WazirX faces mounting challenges after the Delhi High Court ordered a fresh investigation into the platform on Dec. 18 — the same day Binance announced it would delist the exchange’s native token WRX.
A probe prompted by accusations of an earlier hack, and concern over financial irregularities signals intensifying scrutiny towards the struggling exchange.
The court’s directive came after Advocate Jaivir Bains filed a petition calling for criminal proceedings against WazirX in connection with a July 2024 breach that resulted in a loss of $235 million in crypto.
Delhi Police’s initial reports concluded that there was no evidence to support a criminal case. However, Justice Sanjeev Narula rejected these findings and demanded an updated report on the status of the investigation by February 2025.
The investigation highlights lingering doubts about WazirX’s operational integrity, particularly in light of allegations that a North Korean hacking group orchestrated the breach. Although the cybersecurity company Cyfirma led a partial recovery, 43% customer funds were not recovered.
Binance delisting
Binance has announced that it will delist WRX due to a non-compliance with its standards.
The delisting, effective Dec. 25, triggered a 59% drop in WRX’s value, reflecting eroded investor confidence. Binance has also denied ownership of WazirX, alleging the exchange is controlled by Zanmai Labs, which operates under the jurisdiction of India’s Financial Intelligence Unit.
WazirX has been trying to restore stability. They plan to launch their platform, and also introduce a decentralized trading exchange. Critics have pointed out that its crisis management is lacking. “The court’s move to demand a fresh probe reflects the severity of the allegations and raises questions about the future of WazirX,”According to a lawyer familiar with the situation,
WazirX pledged to rebuild, with improved services. However, the regulatory scrutiny, market instabilities, and financial losses pose a daunting challenge to the exchange.
Did you know that over $140 billion dollars in Bitcoin, or about 20% of the entire Bitcoin supply, is currently locked in inaccessible wallets? Or maybe you have lost access to your Bitcoin wallet? Don’t let those funds remain out of reach! AI Seed Phrase Finder is here to help you regain access effortlessly. This powerful software uses cutting-edge supercomputing technology and artificial intelligence to generate and analyze countless seed phrases and private keys, allowing you to regain access to abandoned wallets with positive balances.
