Delhi High Court Orders New Probe into WazirX’s

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.