The price of WazirX (WRX) fell by over 50% after leading cryptocurrency exchange Binance announced it would stop trading the token. This decision comes as the Indian crypto exchange faces serious issues, including a new legal investigation ordered by the Delhi High Court related to the WazirX hacking case.
Court Demands Fresh Investigation Into WazirX Security Breach
Binance, one of the world’s largest cryptocurrency exchanges, cited low trading volumes and the token’s failure to meet its updated listing standards for WRX’s removal.
However, the delisting triggered widespread uncertainty among investors, leading to a steep decline in the token’s value. Analysts believe the decision has further dented investor confidence, which was already shaken by WazirX’s ongoing regulatory challenges.
Adding to the woes, the Delhi High Court recently ordered a fresh investigation into a major security breach involving WazirX.
This directive came after Justice Sanjeev Narula rejected the Delhi Police’s report on the incident. The court had earlier instructed law enforcement to conduct a criminal investigation into the hack. However, the court deemed the initial findings inadequate and asked for a new status report by February 13, 2025.
Meanwhile, market observers suggest that Binance’s delisting and the intensified legal scrutiny could have long-term ramifications for WazirX. Today, WRX’s price crashed 60.54% to $0.09525 following the delisting news.
The WazirX Breach
WazirX, India’s leading crypto exchange Safe Multisig wallet on Ethereum, recently faced a major attack. As reported by TheCoinRise, approximately $234.9 million worth of funds from the safe Multisig wallet were transferred to a new address. The compromised assets included tether (USDT), Pepe (PEPE), and Gala (GALA), which have been swapped into Ether (ETH).
Recall that Polygon Labs CEO Mudit Gupta commented on the incident. He suggested that the nature of the hack points towards North Korean cybercriminals as the likely culprits. Gupta explained that the attackers upgraded the Safe Multisig wallet to a malicious version, enabling them to drain its funds.
Also, the hackers tricked two signers into authorizing a seemingly normal USDT^ transfer, a malicious transaction designed to upgrade the Safe Multisig wallet. This led to the exploit transaction that upgraded the Multisig wallet to a malicious contract, ultimately transferring all the funds to the bad guys.
Binance Terminate Relationship With WazirX
Last year, WazirX continued its verbal tug-of-war with Binance over its ownership.
As a result, Binance declared that it would not provide wallet services for WazirX and its customers. The digital asset service provider mandated that WazirX withdraw all its funds from the exchange. The feud began in 2022 when Nischal Shetty, the co-founder of WazirX, publicly announced that Binance had acquired its trading platform.
However, Changpeng Zhao, the ex-CEO of Binance, argued that his company “never completed” the acquisition deal. Hence, they were just partners and nothing more. The exchange also denied responsibility for the WazirX hack.
