The price of WazirX (WRX) token fell over 50% after Binance announced it would stop trading the token. This decision came amid new legal issues faced by the Indian crypto exchange, including an investigation into a hacking case.
Court Proceedings over Breach Incident
Binance, one of the world’s largest cryptocurrency exchanges, cited low trading volumes and the token’s failure to meet updated listing standards for WRX’s removal. This created uncertainty among investors, leading to a significant drop in the token’s value. Additionally, the Delhi High Court recently ordered a new investigation into a major security breach involving WazirX. This directive was issued after Justice Sanjeev Narula rejected the Delhi Police’s report. The initial findings were deemed inadequate, and a new report is expected by February 2025.
WazirX Wallet Hack
Recently, WazirX, India’s leading crypto exchange, faced a major attack on its safe Multisig wallet on Ethereum. According to TheCoinRise, approximately $234.9 million worth of funds were transferred to a new address. The compromised assets included tether (USDT), Pepe (PEPE), and Gala (GALA), which were swapped into Ether (ETH). Polygon Labs CEO Mudit Gupta commented on the incident, suggesting North Korean cybercriminals as likely culprits. He explained that attackers upgraded the Safe Multisig wallet to a malicious version, enabling them to drain funds, and tricked two signers into authorizing a seemingly normal USDT transaction, which led to the malicious contract update.
End of Relations with Binance
Last year, the verbal dispute between WazirX and Binance over their relationship continued. As a result, Binance declared it would stop providing wallet services for WazirX and its customers. The conflict started in 2022 when WazirX co-founder Nischal Shetty announced that Binance acquired their platform. However, Binance's former CEO Changpeng Zhao argued that the acquisition was never completed, and they remained mere partners. Binance also denied responsibility for the WazirX hack.
The ongoing developments, including the Binance delisting and continuous legal investigations, may have long-term implications for WazirX and its WRX token. The market will be closely monitoring the situation.
